Two former wealth managers at Goldman Sachs have started an advisory firm that pledges not to fall victim to conflicts of interest.

Nicolas Sarkis and Philippe Lamy have set up Alphaone Partners, which will specialise in investment advice. It will co-invest with clients in high-quality third-party funds and refuse kickbacks from asset managers keen to win a place on its platform. Sarkis pledged not to churn portfolios. He said: "Unlike brokers and banks, we are not paid to trade." Sarkis and Lamy worked at Goldman for nearly 13 years. Several of its wealth executives have left recently following a reshuffle of the business to boost profitability. The duo are convinced wealthy investors deserve a better service from advisers. They are targeting clients worth $100m (€76m). Sarkis said: "They are too big to be treated like small retail clients." Wealthy clients are renowned for failing to spot private banks' hidden charges. Banks will readily get them access to hedge funds, for example, but demand front-end fees of 2.5%, plus ongoing fees on top of manager fees. Last week, New York state attorney-general Eliot Spitzer sued UBS for trying to profit from certain client accounts by switching them from a commission to an asset-backed fee basis. UBS denied wrongdoing. The Swiss courts recently said kickbacks should not be paid or received by a private bank without permission from its clients. But Sarkis is far from convinced the practice will end. He said Alphaone had drawn on the investment philosophy of David Swensen, top-ranked chief investment officer at Yale University, which has produced 17.2% a year over 10 years. Alphaone will use tracker funds, exchange-traded funds and futures in efficient markets. It will use active managers in those that are less efficient, incorporating alternative strategies. Sarkis said wealthy investors too often allowed themselves to be prodded towards well-known brands.