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Comments
FSA Paranoia
Another well written article showing a degree of common sense which is unfortunately missing from the FSAs current thinking. At the most basic level the FSA fail to comprehend that it is not the platform operator (they are no longer providers!) who pick the funds into which the client invests, this rests solely with the IFA and the RDR clearly covers adviser charges. Taking this any further, i.e. applying adviser charging to platform operators will have two very simple, direct outcomes for clients: Complication - this falls foul of "Outcome 3" Increased costs - this falls foul of pretty much everything in teh FSAs recent documents on platforms I have no idea who the FSA question when coming up with their "what clients" want details, but in the real world, clients want the following: Simplification - platforms provide this with consolidation, less paperwork etc Clarity - the current bundled system with "products" (i.e. platform and underlying funds) and "advice" charges being seperate is straighforward and easy to understand. Acceptable costs - again, the larger platform providers offer this due to their enhanced rebates. Why mess up economies of scale?
Posted by: You must be joking
Have I missed something?
I have no axe to grind either way but surely if the platform performs admin functions that save the provider money (it has to cost less to deal with a platform than the end user), money should change hands for this service. The alternative is that the customer pays. End of.
Posted by: John Piper
Transparency
RDR is looking for transparency for clients to allow them to make direct comparisons between various advisers and the services they provide. To make it clear platforms and product providers need to show all costs to the client to allow them to decide if there is value to be had. Only when every one gives full disclosure will the client be able to do this. Complex products (in the eyes of the client) need to be simplified. While Platforms entice advisers with deals and product providers offer high levels of commission there will be questions as to the integrity re why advisers are using one over the other.
Posted by: annon