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Speirs & Jeffrey blames cost of regulation as it hikes commission
Glasgow-based stockbroker and investment manager Speirs & Jeffrey (S&J) has upped its commission charges as it deals with costs it says have ‘increased significantly’ in recent years.
‘Our aim is that our revenues should be balanced between fee and transactions,’ said S&J director Russell Chrichton. ‘Looked at in the round, our overall charging structure remains extremely competitive in comparison to obvious competitors.
‘The rationale for amending our charging schedule is principally based on higher regulatory costs and ensuring that all clients (whether they transact or not) should pay something for our ongoing advice and professional service.’
The company, which has over £5 billion in funds under management and advice, previously billed clients at £10 per line of stock up to £150, with commission on each trade at 1.8% up to £8,000, 1% on the next £7,000 and 0.5% on the balance above £15,000.
It will now charge 1.8% on the first £10,000, 1% on the next £10,000 and 0.5% between £20,000 and £220,000, with charges negotiable above this level.
An increase in the company’s compliance charge from £2.50 to £5 had also been necessary to cover higher costs, largely as a result of the increased Financial Services Compensation scheme levy.
‘The costs of offering a full professional service including maintaining a comprehensive suitability framework have risen significantly in the last 10 years,’ added Chrichton.
‘The introduction of the retail distribution review is also a factor.’
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