Bundled charging wraps impede transparency - Nucleus

Nucleus Financial’s David Ferguson has hit out at wrap providers which “hide behind” bundled charging structures for hindering client transparency.

Ferguson, who runs the IFA-owned and controlled wrap, says current volatile market conditions have increased the importance of allowing investors full disclosure.

“Given the fact nobody is sure when market conditions will improve, it seems there is no better time for advisers to employ client solutions such as wrap that offer total transparency for their clients,” he says.

“Now, more than ever, it is not sufficient for wrap providers to hide behind a bundled charging structure concealing all kinds of conflict of interest and hidden deals.”

Ferguson also expects high quality financial advisers to weather the recent storm.

“The current turbulent market conditions, whilst deeply unsettling for all concerned, serve a timely reminder of the need for premium financial advice,” Ferguson says.

“It may just be that the on-going credit crunch provides the catalyst for greater professionalism in the UK advisory market.”

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Hysni Kaso
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Hysni.Kaso@incisivemedia.com