Schroders Personal Wealth is seeking to undercut rivals such as St James’s Place fees by as much as a half, the FT has reported.
Schroders’ joint venture with Lloyds intends to place its up front fees at 3.65%, against the 7.95% of St James’s Place.
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This is according to a internal research paper which also puts ongoing fees at 1.9%, compared to those of St James’s Place and Brewin Dolphin which both sit above 2.7%.
Schroders PW has been available to existing Lloyds planning customers since June, with a rollout to the wider public expected in November.
The venture experienced IT problems at the end of August, a survey revealing concerns that technology problems were hampering advisers in supporting clients.
Schroders vs St James’s Place
Schroders and Lloyds confirmed plans for their joint wealth management venture last year, with an intention to carve out a share of the mass-affluent advisory market currently dominated by St James’s Place.
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By GlobalData“The UK wealth management market is growing, and pension freedoms mean that the responsibility is shifting to the individual,” Schroders told PBI in May.
“This means more people than ever need help as they plan for their futures and it is more important than ever to us that we provide an excellent service to our clients.”
“Any new entrant into the market supports our belief that there is a significant advice gap in the UK,” a St James’s Place spokesperson added.
“A growing market combined with fewer advisers, low interest rates, tax complexity and pensions freedoms means that there has never been more demand for advice than today.”
