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Fidelity Worldwide Joins Hargreaves in Reducing Fees

Fidelity Worldwide Investment reduced its fees for personal investing, joining Hargreaves Lansdown Plc (HL/) in cutting costs for retail clients.

The company’s new tiered fee structure is effective on Feb. 9 and will result in a single charge for its services, Fidelity said in a statement today. Clients with investments of as much as 250,000 pounds ($414,000) will be charged 0.35 percent of assets and 0.2 percent for investments of 250,000 pounds to 1 million pounds on all accounts.

“Our new pricing model is simple and clear,” Mark Till, head of personal investing, said in an online conference call with journalists. “If you don’t have a simple pricing, it’s impossible to work out what you pay. Fixed-price models generally combine a lot of additional charges for transactions.”

Fidelity and Hargreaves, the U.K.’s largest retail broker, are reducing costs for clients as part of a second phase of U.K. regulations introduced last year. Hargreaves said last week that it will charge clients a 0.45 percent fee on the first 250,000 pounds.

Firms are introducing fees on their investment platforms, which enable consumers to invest directly in funds, to replace commission income and comply with the U.K.’s Retail Distribution Review. The rules banned financial advisers from taking commissions from fund providers in its first phase.

Fidelity Worldwide, which oversees about 160 billion pounds in assets, also set its annual management charge for 140 funds on its select list at an average of 0.64 percent.

Barclays Stockbrokers is due to announce its new pricing later this month. Chelsea Financial Services plans to announce its changes at the end of February.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

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