SCM Direct has announced it is launching an upgraded Mifid II compliant digital wealth management platform, aiming to offer clients full transparency.
Co-founders Gina and Allan Miller said the new client portal, Mark II, built in cooperation with Hubwise, will give clients access to all information relevant to their account. It will also enable them to track their returns and view them over different time periods, as well as obtaining quarterly valuations and annual statements of costs.
It will also send notifications of a 10% drop in the value of a client’s portfolio within 24 hours of the fall occurring and allow them to upload documentation and other necessary information, in a move designed to make life easier for overseas clients.
Gina Miller (pictured) said that she believes the industry is largely unprepared to deal with Mifid II and that this will be evident come January.
‘This regulation is no surprise, yet firms have been bleating and foot dragging about the expense and complexity of doing the right thing and letting people know how much they are truly paying. If a boutique firm like ours can today launch a fully compliant service, there are no excuses.’
The firm will also reduce its fees and minimum investment level.
Institutional and non-UK clients will now be able to invest with a minimum of £10,000, down from £15,000 previously, while the new entry level for corporate and charity accounts will be reduced from £150,000 to £100,000.
SCM Euro or USD portfolios will now have a minimum entry of €100,000 and $100,000.
Fees will also drop to a total cost of 0.98% a year, down from 1.1-1.114% currently, according SCM's portfolio factsheets. The 0.98% breaks down as 0.4% annual management fee plus VAT, bringing it to 0.48%, 0.29% typical underlying ETF costs, 0.12% custody and admin, as well as 0.09% typical transaction costs.
Gina Miller said the firm can still make a profit at the new minimums, but there are no current plans to lower entry levels further as the acquisition cost will become too high.
The portal will be available to clients from today.