Strategy

Adam & Co Implements New Account Charges

Wendy Spires, Group Deputy Editor, London, 18 July 2012

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As previously announced, from September Adam & Company, the Scottish private bank which is the sister firm of Coutts, will impose a £40 ($62) monthly charge on some of its account holders.

Under changes to its tariffs which were announced in September 2010, the £40 charge will apply to all account holders who have less than £250,000 in deposits, investable assets or borrowings with the bank (the amount can be a combination of savings, investments, loans and mortgages). The delay between the announcement of the new tariff and its implementation in September 2012 is due to the bank’s rollout of a new Avaloq IT platform.

The new charge is understood to be aimed at rewarding clients who use Adam & Co for more than just basic banking – a tack which is increasingly being taken by wealth management firms in this time of heightened margin pressures and, indeed, a trend towards greater transparency on fees.

“We have looked to recognise clients that use us for more than just transactional banking and to deepen relationships with those that don’t,” the bank said in a statement to WealthBriefing.

The new charge is anticipated to affect around 40 per cent of Adam & Co’s client base.

Adam & Co is believed to be asking that new clients have a minimum of £750,000 to invest, however there will be some flexibility on this. Most banks tend to be flexible to a degree on minimum asset thresholds in recognition of the fact that the top-end clients of tomorrow may come in just under the minimum level today, or that they may have significant portions of their money tied up, in the case of business owners for example.

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