FSA ignoring lack of transparency in client charges - Novia

Wrap provider Novia says the FSA failed to pick up on the lack of transparency in client charges in the platform sector in its recent Consultation Paper.

Chief executive officer Bill Vasilieff says whilst the push of the RDR towards clear product pricing and adviser remuneration has been acknowledged, lack of transparency has not been.

“There are still too many examples of undisclosed rebates from fund managers to advisers that could be viewed as influencing platform choice for their clients, for example the illusion that platforms are ‘free’ to the client.

“We know the FSA have promised a Thematic Review of platforms and we will be making our thoughts known,” he adds.

However, Novia says it is ideally placed to serve those advisers choosing the independent route post RDR.

 “There is a considerable fit with the proposition we have for professional investment advisers and their clients. We are offering the breadth of asset choice including ETFs and structured products that have been highlighted in the latest RDR proposals – for example we have around 600 ETFs available now,” says Vasilieff.

“We also believe it is right clients agree to the fees appropriate to the work and value their advisers add – we support Adviser Charging flexibility on our wrap platform.  Flexibility itself raises an issue - for some players there will be considerable system changes and high redevelopment costs.”