Schroders intends to use its new Financial Planning business to launch a price war against rivals like St James’s Place and Brewin Dolphin.

Financial Planning has become a key part, alongside wealth management, of Lloyds’ latest profit drive.

Internal research from Schroders Personal Wealth, Schroders’ joint venture with Lloyds, which was seen by the Financial Times, appeared to indicate customers should pay some 3.65% in up-front fees, versus SJP’s 7.95% per cent and Brewin Dolphin’s 4.7%.

The FT also says ongoing fees would be 1.9% all in, while SJP’s and Brewin Dophin’s are both in excess of 2.7%.

A Schroders spokesman told the Financial Times: “Our pricing is transparent and competitive.

“We know from experience and numerous studies have shown that professional financial advice generates value.

“We can play an important role in helping more people plan for the future and manage their finances with a professional service.”