View the article online at http://citywire.co.uk/wealth-manager/article/a745564
Executives slam trade bodies and ‘naive’ FCA for lack of fee guidance
by Elsa Buchanan on Apr 10, 2014 at 09:03
She added the WMA is ‘anxious to understand where the regulator believes some of our firms could be improving, and will be discussing this with them as a matter of urgency’.
Pamela Reid, executive director and head of Quilter Cheviot’s Bristol office, warned the findings may not necessarily tell the whole story.
‘Disclosing your charges is quite straightforward, and I don’t think there needs anything more to be said than that. Allied to the importance of the disclosure of adviser charging is looking at the actual cost of investment,’ she added.
Jonathan Fry, a director at his eponymous wealth management firm, responded to the findings by asking: '‘The question is: what is it specifically that the FCA is saying that is not being declared by the firms?’
He added: ‘I think that the FCA is very right to highlight those issues especially the one of restricted advice status and what they charge, but it’s over simplistic to think that all clients are as rational as the regulator would wish them to be, or as well informed.
'The explanation and discussion of fees is a potentially very time consuming and open-ended, wide ranging subject. It is far from straight forward to think that at an initial meeting a client can really grasp the implications of different firms' fee models.'
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