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Charles Stanley stokes war of words with Hargreaves Lansdown over FCA probe
by Elsa Buchanan on Oct 08, 2013 at 15:01
The document said: ‘We can say pricing will be important and we have already received some highly attractive suggestions. However, performance potential of the fund (taking into account charges) will also be central to which distribution segment a fund is allocated to. As a guide, from the approaches we have had so far we can say it is likely a fund offering no discounts may struggle to become a Core or Wealth 150 fund, as we have already received proposals that go significantly beyond what we currently achieve.’
Charles Stanley’s comments on the FCA review come less than a week after the firm hit out at Hargreaves Lansdown over the delay in the launch of its rebate-free pricing structure, which has been put back from the end of the year until February.
The Charles Stanley spokesperson added: ‘We’re a fee charging model and we’re free from any influence between closed and open-ended funds; and we’ll co-operate fully with the FCA.’
Bestinvest, which operates non-advised and both full financial planning and advised services, also welcomed the FCA’s decision to launch a review, with a spokesperson pointing to ‘the importance of these fast-growing services for DIY investors in the middle of the advice gap’.
‘Investors should be very clear that when they see a list of funds that are essentially supported by a broker that the research behind it is unbiased.’
Bestinvest confirmed the FCA had not yet been in contact.
Redmayne Bentley Stockbrokers, which also offers execution-only services, declined to comment on the FCA’s move.
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by Danielle Levy on Dec 04, 2013 at 11:37