The topic of charges and fees is usually on the regulator’s radar. The RDR published in 2012 aimed to rectify ‘opaque charging structures’ within the advice market and since then the regulator has kept a close eye on the matter. Recently the FCA conducted a deep dive review of Adviser charging structures in its newly published Adviser survey report which found that 89% of the respondent advisers charged clients percentage fee, 44% had fixed fees and 27% reported hourly charges (titled ‘FCA survey of firms providing financial advice’, published on the 1st of July 2016 –click here to read in full). On the provider side too, across Europe there have been calls for improvement in the communication of fees and charging structures to the end investor (via KIIDS, PRIPS) in a bid to help investors navigate through the variety of charges that can erode/affect their portfolio. However, most investors remain unaware of hidden costs that are unaccounted for in glossy literature from product providers.
FE would like to congratulate all the winners of the Fund Manager of the Year Awards 2016. FE's Gary Wheeler and Mika-John Southworth presented the Global Group and UK Income awards to Fidelity International and Evenlode Income on the night (pictured below).
Fund Managers - the mythical sirens of the asset management industry lure in vast amounts of money and admiration with their perceived intellect and skills. As of April 2016, records show that managers in the UK are responsible for an impressive £928 billion held in investment products (stats from the Investment Association’s website). With some star managers managing over £800million in a single fund, it is safe to say that a handful of individuals hold the prosperity of many of the UK’s investors in their hands and often their judgments decide if money invested doubles in value or vanishes overnight.
First they said it couldn’t possibly happen, then that it probably wouldn’t happen, then that it might happen and until finally today it did happen. Yesterday Britain voted to leave the European Union and although the vote is not binding it seems inconceivable that it won’t be followed through.
Let’s for a moment rewind to the summer of 2012 – the personal finance section of the
Daily Telegraph published a research study that found that the television character most closely associated with the term ‘’financial adviser’’ was the market trader Del Boy, from the popular sitcom Only Fools and Horses.
FE is pleased to announce that the FE Invest Model Portfolios are now available via three more of the UK’s leading platforms following increasing demand from the financial adviser community.
Love it or hate it you cannot ignore the latest American import – robo advice. What many of us initially thought was a passing fad is now officially here to stay, as the FCA has advocated the adoption of ‘automated advice models’ as a means of delivering regulated advice ‘’more cheaply, efficiently and effectively’’.
Results from a recent survey of FE adviser clients found that more than half of advisers (52 per cent) only use a single model portfolio service provider – despite the boom in model portfolios and providers since the implementation of the Retail Distribution Review, with advisers turning to DFMs (discretionary fund managers) to assist with managing clients' assets.
First published in Professional Paraplanner Magazine, April 2016.
Advisers are not always expert stock pickers and shouldn’t have to be. Post RDR and in preparation for the looming sunset clause, more advisers are starting to recognise the benefit of allowing specialists to deal with their fund picking as a key strategy for spending more time with clients, reducing risk levels and operating costs. Results from the FE Adviser Survey 2016 were testament to this.
On April 6th, new UK taxation will be applied to dividends https://www.gov.uk/government/publications/income-tax-changes-to-dividend-taxation/income-tax-changes-to-dividend-taxation.