// D2C Tag

D2C

17 Mar 2014 End investors in sight

It’s been very busy in the D2C platform world and competition is hotting up as the April deadline for unbundled platform pricing approaches. Hargreaves Lansdown was the first to announce its post-RDR charging structure and was followed by Fidelity, Barclays and a host of other discount brokers and direct platforms in the days and weeks that followed.

The lang cat’s price comparisons are comprehensive (latest update at http://langcatfinancial.co.uk/blog/cut-price-fruit-russian-oligarchs-gary-coleman/) so I’m not going to reinvent the wheel, apart from pointing out the outliers. These include a pretty expensive Chelsea, which announced its charge of 60bps (which includes the Cofunds fee of 20bps) and Barclays at 70bps for £5k but tiering down quickly to 35bps from £10K. At the other end, Charles Stanley Direct is one of the cheapest for the modest end of the market with a fee of 25bps up to £250K and then 20bps from there upwards. In a bid to attract customers from other platforms, it will also waive the platform charge for a year for all new money and transfers to its platform until 1st April 2014.

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D2C

31 Jan 2014 Lidl or Waitrose?

Austerity measures

January is usually an austere month.  After the Christmas and New Year festivities, not only do we have far less money, but it’s also becoming the norm to give up alcohol for the entire month.  Add to that our (mostly) unrealistic New Year resolutions to get fitter, get richer, and get better at a variety of things and January becomes a very tiresome month.

The focus on cost was particularly important in the direct-to-consumer (D2C) platform world. With the April deadline roaring down the tracks towards them, January was when most D2C platforms announced their pricing strategy.  The industry had been waiting with baited breath for the largest direct platform (and also the largest overall distributor in the country), Hargreaves Lansdown, to announce its pricing strategy, which it finally did on 15th January.  In a nutshell, Hargreaves Lansdown (HL) has introduced a flat fee of 0.45% regardless of the size of assets under administration.

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