UK investment platform Old Mutual Wealth (OMW) is set to introduce family linking for its customers.
While OMW already offers this feature for spouses, it has extended it to grandparents, parents, parents-in-law, siblings, children and grandchildren.
This means that clients and their family members will receive a discount, starting from April 2020, which will “significantly save money across generations”, the firm said.
There won’t be a minimum investment and there is not a set number of family members allowed to be linked, the platform added.
Lower charging structure
In tandem, OMW will introduce a different pricing model, reducing its five-tier structure to four.
The change will see a significant number of clients pay lower charges.
Members with assets ranging between £750,000 and £1m ($1.3m, €1.2m) will save 0.1% in annual charges.
While clients holding assets between £250,000 – £500,000 and £100,000 – £250,000 will save 0.05% each year.
| Current charge bands | Current charge | New charge bands | New charge | |
| First £25,000 | 0.50% | First £25,000 | 0.50% | |
| From £25,000 to £100,000 | 0.35% | From £25,000 to £250,000 | 0.30% | |
| From £100,000 to £500,000 | 0.30% | From £250,000 to £750,000 | 0.25% | |
| From £500,000 to £1m | 0.25% | More than £750,000 | 0.15% | |
| More than £1m | 0.15% |
Source: Quilter
Steven Levin, chief executive of Old Mutual Wealth, said: “The ‘great wealth transfer’, which is seeing trillions pass between generations over the next 30 years, has been well documented.
“We are seeing more advisers using our platform to support wider family units and providing advice that spans generations.
“And it is our duty to encourage intergenerational planning, allowing advisers to offer savings to those families.”
Case study
Quilter has shown how members could save £1,000 in a year, by using both family linking and under the revised pricing structure.
| Family member | Asset Value | Annual sum saved |
| Parent | £380,000 | £331 |
| Parent in-law | £300,000 | £279 |
| Investor | £250,000 | £219 |
| Spouse | £120,000 | £105 |
| Child 1 | £10,000 | £26 |
| Child 2 | £15,000 | £40 |
| Total | £1,100,000 | £1,000 |
Source: Quilter
