Barclays Wealth unveils post-RDR advice charges

Barclays Rain 480

Barclays Wealth has revealed its post-RDR charging structure with a new rate card for advisory clients.

Clients using its advisory investment service will be charged an annual management fee of 0.75 per cent on the first £1m, dropping to 0.6 per cent for assets between £1m and £3m, 0.5 per cent for assets between £3m and £7m and 0.25 per cent for assets over £7m.

As well as an annual charge, Barclays clients will pay an execution fee for every advised trade based on a percentage of the investment.

Barclays’ execution fees for structured products will start at 0.7 per cent for the first £100,000, falling to 0.4 per cent for investments above that amount.

Equities and collectives will be charged 1 per cent for the first £100,000, before dropping to 0.65 per cent.

Clients using a dedicated portfolio manager will be charged 1.25 per cent for the first £5m, then 1 per cent for the next £5m.

Intended for high-net-worth clients, the service has a minimum investment of £3m for new clients. The bank is considering whether to introduce a minimum fee of £37,500.

For clients with a portfolio manager, the bank will levy an annual financial planning charge of 2 per cent of the first £250,000 under advice and 1 per cent for assets above that amount.

A Barclays spokeswoman says: “We have taken a number of steps throughout the last year to ensure our clients are kept fully up-to-date on our approach to the RDR.  We have been writing to them over the last week with details of pricing to ensure that we continue to be fully transparent.

“We believe that, through our investment philosophy, incorporating cutting edge behavioural finance and asset allocation techniques alongside global expertise in research and investments, we continue to offer a market leading service to clients, with clear, transparent and competitive pricing.”

Barclays pulled out of mass market retail advice in January 2011, but has continued to offer advised services to high-net-worth clients through Barclays Wealth.

Baronworth Investment Services director Colin Jackson says: “The rates seem good value but it depends how much time is spent on each deal and how complex it is. If a customer invested £1m in equities then that would cost more than £10,000 for not much work.”