Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a338824
Richardson exposes AXA's transparency shortfall
by Michelle McGagh on Apr 30, 2009 at 09:00
Adviser Paul Richardson said AXA should work on the transparency of its own documents before lobbying the regulator over banks’ disclosure of advice costs.
As New Model Adviser® reported, AXA is lobbying the Financial Services Authority to develop a system that allows comparison of advice costs across all distribution channels, fearing the retail distribution review will allow tied advisers to ‘manipulate costs’.
Richardson (pictured), managing director of Concept Financial Planning in Croydon, said AXA does not allow complete transparency in its annual illustration documents.
A client of his has £150,000 invested in an AXA investment bond and Concept rebated £14,000 of commission back to the client, which means there is a total of £164,000 in the bond, said Richardson.
However, the annual report from AXA only shows £150,000 invested although the exit charges are calculated on an investment of £164,000.
‘AXA talks about this clear and transparent way of working but that isn’t transparent,’ said Richardson.
AXA confirmed it does not offer commission details on its annual bond illustration.
Markets
News sponsored by:
1 comment so far. Why not have your say?
Mike Peters
Apr 30, 2009 at 15:14
but the client has only invested £150,000.00 not £164,000 so why would AXA say the client has invested more than they have?????? Surely the adviser in question should make it clear ( and I'm sure he has)to the client what has happened?
report thisleave a comment
Please sign in here or register here to comment. It is free to register and only takes a minute or two.