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Liechtensteinische Landesbank Says It Breaks New Ground With Pricing Policy

Tom Burroughes

4 June 2014

has changed its pricing policy on investments to meet client demands and regulatory controls, waiving commission fees for investment advice and asset management. Instead, from 1 July, the bank will pass on all trailer fees to clients received for third-party funds.

The move, which is similar to how UK-based wealth managers have had to scrap such fee structures to comply with rules known as the Retail Distribution Review, will also see LLB introduce a performance-based or interest-based fee model for selected strategy and bond funds, the bank said in a statement yesterday.

LLB said it will also simplify the fee structures for custody accounts and brokerage fees and will adjust its prices for individual services and securities management. The safekeeping of LLB shares and medium-term notes is free of charge, it said.

The move suggests that such banks are having to make their fee structures more transparent so that banks based in Liechtenstein and Switzerland keep pace with reforms imposed on firms in countries such as the UK and in the European Union.