Vanguard updates UK platform fees, raising costs for small investors

Vanguard is changing its UK platform fees, introducing a £4 monthly charge for DIY investors with less than £32,000. This makes it more expensive for those with under £10,000 compared to competitors like AJ Bell and Hargreaves Lansdown. In contrast, Vanguard is reducing fees for its managed service, lowering the management fee from 0.3% to 0.2%. Total fees for this service will now be 0.51%, aimed at assisting first-time investors and those needing guidance. These fee changes will take effect at the end of January 2024. The adjustments come as the Financial Conduct Authority seeks to enhance support for investors, particularly those who may struggle to afford full financial advice.