Fund shops, wealth managers and others around the financial industry are coming under pressure to remove punitive exit fees after the Telegraph revealed Hargreaves Lansdown, Britain’s biggest broker, had done so this week.
Fund shops AJ Bell and The Share Centre, which both charge customers an exit fee, said they did not have plans to remove these.
Perhaps the loudest call landed at the feet of St James’s Place (SJP), Britain’s largest wealth manager. The firm levies investors an “early withdrawal charge” for its pensions and bonds, which is only charged if a customer leaves within six years.
If the client withdraws funds within the first year, there is a 6pc fee. This falls by one percentage…