Although it wasn’t common practice, Hargreaves told the investor that it valued his loyalty and would extend a “special agreement” to him on fees.
Investors’ Chronicle said Hargreaves announced it will offer a flat price of 0.25pc (approximately $0.38) on all funds up to the value of £1m (approximately $1.5m) in place of its tiered charge on investment funds, which starts at 0.45pc (approximately $0.69).
On holdings valued at more than £1 million (approx. $1.5m), it was noted, there would be no fees. On securities worth between £1 million and £2 million (approximately $1.5m and $3m), it now charges its other Sipp clients a fee of 0.1%.
The investor was apparently encouraged by Hargreaves to keep the unique arrangement a secret.
According to the Investors’ Chronicle, the broker said: “As the circumstances of your friends and extended family will differ from your own, we do request that you not share the details of your offer with other people so that we can avoid causing disappointment.”
