25 Mar 7im cuts rates for HNW investors
In a move that cements its position as a platform for high-net-worth investors and family offices, 7im has cut fees for investors with more than £2m on platform. From 1st April, investors with between £2m and £5m will see their fees fall from 0.15% to 0.08% for assets between £2m and £5m, while those with more than £5m will see fees drop from 0.15% to 0.05% on balances over £5m.
The rate card cut will apply to both new and existing business and is a compelling proposition for investors with large portfolios. The move is part of a longer-term strategy to become the platform of choice for high-net-worth clientèle.
7im is one of the few platforms to have seen an upturn in sales flows in the past 12-18 months, which is down to two factors — new business and the retirement solutions they put in place during 2018 — the 7IM Sipp and Retirement Income Service and which are gaining traction with intermediaries and their clients.
7im had always offered clients access to a broad selection of third-party Sipps, but it became a Sipp provider in its own right to provide a Sipp that is fully integrated with the platform. Offering high-net-worth clients access to third-party Sipps is flexible and works well, but its own Sipp reduces friction and leads to lower costs all round.
An investor with a portfolio of £7.5m, of which £4.5m is in a Sipp and the rest in GIA or ISAs, will see annual fees fall from £12.5k to £7.9k and compete more effectively with larger platforms like Transact, Nucleus and AJ Bell. To find out how 7im pricing will change, run the fee on 1st April.