View the article online at http://citywire.co.uk/wealth-manager/article/a756234
Quilter Cheviot negotiates variable fees based on division of labour
by Elsa Buchanan on Jun 12, 2014 at 08:13
Quilter Cheviot is negotiating fee arrangements with advisers based around the division of responsibility, including suitability, in the relationship.
On a case by case basis, the wealth manager will adjust its headline 1% charge depending on which party takes responsibility for suitability with the end client, whether the money is held in Quilter Cheviot’s nominee account and the level of client support required.
Alongside the standard 1% charge on the first £1 million, Quilter Cheviot’s fees fall to 0.5% on the next £1.5 million, 0.4% on the next £3 million and 0.3% thereafter.
Commenting on discounted fees that have been offered on a case-by-case basis, a spokesperson said: ‘It is not common practice for Quilter Cheviot to offer reduced intermediary rates as our business model is based on a consistent headline rate approach.
‘However, in circumstances where there is potential for the introduction of significant funds under management there is a case for negotiation.’
The move comes as private equity backer Bridgepoint told Wealth Manager there were no immediate plans for a sale of the business, having owned Quilter since November 2012.
Bridgepoint bought Quilter, run by Martin Baines (pictured) back in November 2012 and then funded the merger with Cheviot, which completed in June last year.
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