Canaccord Genuity Wealth Management (CGWM) has scrapped VAT from its managed portfolio service (MPS).
Following a recent ruling by HMRC, a 20% VAT charge will no longer be applied to its MPS, ESG Portfolio Service and Passive Portfolio Service, held directly and on third party platforms from, June 2021.
After VAT is removed a spokesperson told Portfolio Adviser the ongoing charges figure for a risk 5 balanced client would be 0.24% for the Passive Portfolio Service, 0.79% for the MPS and 0.70% for the ESG Portfolio Service.
A long line of DFMs, including Charles Stanley, AJ Bell, Brooks Macdonald, Brewin Dolphin, Psigma Investment Management, RSMR, Investec and Tilney Smith & Williamson, have also ditched the tax in the last year.
CGWM head of MPS Paul Parker said: “Following a successful negotiation with HMRC after this recent ruling, we are delighted we are now able to remove the VAT from fees on all our risk-profiled portfolios – MPS, ESG and passive. This makes investing with CGWM an even more compelling proposition for IFAs and their clients, as they will continue to receive an extremely high standard of service, but for better value.”
CGWM’s UK business exceeded £30bn in assets under management for the first time at the end of March after growing assets by a third last year.
In April Canaccord Genuity struck a deal to acquire the private client business of Adam & Company from RBS for £54m, hoovering up £1.7bn in discretionary assets for its UK wealth arm.
See also: Canaccord Genuity WM eyes Scottish expansion with Adam & Company acquisition
