Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Regulation forces Brewin to shut advisory dealing service

3 comments
Regulation forces Brewin to shut advisory dealing service

Brewin Dolphin is to withdraw its advisory dealing service in a move it says has been driven by regulation.

The national wealth management firm, led by Jamie Matheson (pictured), is planning to withdraw the service by January in a move that coincides with the onset of the retail distribution review (RDR).

In a client letter seen by Wealth Manager, the firm explained: ‘The regulatory environment in which investment management firms operate has changed significantly in recent years and the responsibilities placed upon us have increased so as to provide investors with greater protection and clarity.’

It has offered clients alternatives in the form of its advisory and discretionary managed services, its new managed portfolio service (MPS) for clients with less than £150,000, alongside execution-only.

Linked to the move, the firm is also offering clients a ‘dealing with advice’ service which has been modified so that it is only available to experienced investors.

Charlotte Black, director of corporate affairs, said the team would decide whether clients were eligible for the service based on ‘know your client’ information.

She said there would be no job losses in relation to the firm’s decision to withdraw the advisory dealing service and added regulation had led to a reclassification of some of Brewin’s services in order to ensure clients have properly considered all of their options and were using the service best suited to their needs and objectives.

In the letter, the firm also reminded clients that besides its new MPS, all other services would be subject to a minimum charge of £1,000 a year plus VAT as of January 2013.

Ahead of the RDR, Brewin Dolphin has introduced a national rate card for clients and has embarked on a programme of shifting existing clients out of trail-paying units.

In comparison, Walker Crips, which offers a range of stockbroking and investment management services, said it has no plans to withdraw from advisory dealing.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter