Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Barclays reverses on RDR admin fee plans

Barclays reverses on RDR admin fee plans

Barclays' wealth arm has reversed on plans to levy an administration fee on product providers.

Last year, the bank was understood to be in discussions about introducing the fee, a move many believed would protect its margins as the retail distribution review (RDR) came into force.

As reported in Wealth Manager in October, Barclays was considering administration fees for product providers across its advisory, discretionary and execution-only channels, arguing fund groups should bear the cost of administering portfolios rather than clients, with the fee coming out of the 75 basis points fund groups typically charge on new RDR share classes.

However in a statement, Barclays said it had called time on these discussions and that no administration fee would be introduced.

A spokeswoman said: 'In line with our commitment to identify fund pricing solutions which will be of direct benefit to our clients, we are pleased to note the increasing competitive pricing now being considered by fund providers and we are no longer progressing discussions on the proposed administration fee.'

When the discussions came to light last year, the Financial Services Authority (FSA) said it was unable to comment on the bank's plan, and whether it matched with the spirit of the RDR, one of wealth managers' biggest concerns with Barclays' plan.

The regulator did, however, say that much would depend on the type of service being provided.

The FSA said: ‘If you are giving advice or a personal recommendation, you are caught by adviser charging rules. If you have some element where you would fall under the definition of a platform service provider, you would fall under the proposed rules there.

'If you are not under either category you still have to comply with the rules on inducements.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Citywire TV
Citywire TV
Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter