The cut is a sign of fee compression in the wealth management sector.

UK-based Seven Investment Management is to cut fees for high net worth investors, suggesting price competition is intensifying in the space.

From 1 April, investors with between £2 million ($2.63 million) and £5 million on its platform will have a fee cut from 0.15 per cent to 0.08 per cent for the balance between £2 million and £5 million, while those with more than £5 million will see fees drop from 0.15 per cent to 0.05 per cent for balances over £5 million.

The cut will apply to existing and new business, 7IM said today.

“We want to make sure that our fees remain appropriate and fair to our clients and we believe that this reduction to our rate card makes us the best value for money platform available for clients including those with higher balances and in family grouping for pricing,” Verona Kenny, head of intermediary at 7IM, said.

A private bank or investment firm usually charges managers an annual management fee for running money, typically around 1.0-1.5 per cent per annum, as a proportion of the total assets under management, according to findawealthmanager.com, an organisation that tracks such trends and marries up clients with advisors.