Barely a week goes by without some sort of debate about the cost and value of financial advice.
So it was a surprise to me to spot that one investment platform, Ascentric, charge 0.5% of your invested wealth for having no adviser.
Other platforms, I’m sure, charge an extra fee for the cost and admin involved in having to liaise direct with investors when the original intent was to do this via an adviser. However…. 0.5%?
To put this in context, most advisers have increased their fees since 2013 from 0.5% to closer to 1%. The average is around 0.8%. This means the 0.5% Ascentric charge whilst you’re without an adviser is not far off the total fee an adviser would charge.
This is nuts. Maybe it changes under Ascentric’s new charging structure, but I’d love to know if other platforms charge such a large fee for this and how many investors are paying it and for how long.
Maybe they’ll let us know.
Update: Novia also charge an extra 0.5% – maybe its a Bath/Bristol thing?
Update: Ascentric have confirmed this charge will not apply under their new charging scheme