Comparing charges

Article by Phil

In the news this week we hear that the biggest brands in the market are getting involved in a “price war” over fees. Schroders Personal Wealth are said to be “attacking” market Leaders St James Place and Brewer Dolphin to undercut their fees. The article in the Financial Adviser (26/9/19) claims that SJP’s advice fees are 7.95% for the first year and 2.95% thereafter. Brewer Dolphins fees were claimed to be 4.7% in the first year then reducing to 2.7%.

Schroders by comparison are pricing their advice and transaction charges at 3.65% in the first year falling to an annual fee of 1.9%.

So, how do these fees compare with Christina Clegg Financial Planning Services?

Well looking at our most recent client, let’s call them Client X, for who we advised on 2 pension transfers with a total value of £300,000. Our adviser charge based on our tiered system was £6,500 or 2.16%.

Our ongoing “Silver” service fee was £2,250 (or 0.75%), and the providers platform charges were 0.5%.

So, the total charges were 2.16% for the first year, reducing to 1.25% in subsequent years.

If you look at Client X’s fees by direct comparison the charges would be as follows:

Year One Later years
CCFPS 2.16% £6,500 1.25% £3,750
Brewer Dolphin * 4.7% £14,100 2.7% £8,100
St James Place * 7.95% £23,850 2.95% £8,850
Schroders * 3.65% £10,950 1.9% £5,700

 

*These figures are those reported in the Financial Adviser (26/9/19)

https://www.ftadviser.com/investments/2019/09/18/advisers-brand-sjp-and-schroders-price-war-irrelevant/

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