Dennis Hall - We've been saying this for years
15:16 | 13 Oct 2009
Lee, I couldn't agree more with what you say, but decent and honest advisers have been saying this for years, and it has got us virtualy nowhere - OK our clients might know a good deal when they see one, but we're in a minority.
Perhaps it's right that this "City Insider" spills the beans, even if it is from the comfort of his country pile. In any event, much of the problem lies at the doorstep of the FSA for allowing the current charging to be calculated as it is. TER's ignore much of the cost of the fund, and the informed adviser then has a devil of a job trying to find out how much the rest of the costs add up - but it's all a bit woolly.
Rather like MPs the fund management industry will charge what it believes it can get away with using the rules in force at the time. More transparency and a few more turncoats and we might start to make headway
Julian Stevens - Alan Miller, we’ve seen your type before!
15:28 | 13 Oct 2009
What is it they say ~ There's none so virtuous as the reformed. Or as hypocritical. I'll bet there are a good few ex-DSF people now working for the FSA who've now got religion.
Rob P - The Power Shift
16:15 | 13 Oct 2009
The tables are turning , the client centred bussines of the future ,the true wealth management/new model will have all the power. Fund management groups will have to offer true value , costs will reduce , a tracker at 0,1% ???? with the profit going to the well run client centred bussines................................... looking forward to the country pile.
Independent in thought and whole of market .
Robert Johnsey - Peopple in glasshouses
18:51 | 13 Oct 2009
I suspect there are very few New Model Advisers who did not start off in direct sales forces and can now afford to pick and choose - having made excellent earnings from commission - and still do from renewals and trail - sorry now called servicing fees.
Smoke and mirrors. Products, whether a padded out 'review' or a policy or a portfolio are still bought and sold - plus ca change plus la meme chose.
The 'advice' community were all in sales and still are in sales but try to call it advice.
There are none so virtous as the reformed and you should look closer to home first.
Nigel - To Rob P - Be careful what you wish for
22:22 | 13 Oct 2009
Sounds good 0.1% tracker funds, advice/information from well run focused client management firms available on the web for an additional 0.1%%.
Looks a good deal for the clients - not sure where everyone else will fit in.
The younger generation are all very able in using the web to research their needs, I expect financial needs will eventually be met in the same way. New Model or not only the fittest will survive on much slimmer margins with volume required.
Financial needs delivered the Amazon way.
Rob P - Nigel
10:52 | 14 Oct 2009
Totally agree, but. Thats the weakness in Haregreves model, large kick backs just like the unbundled wraps.
The mass market will be looked after by tescos and the web for 0.1%
The new model will be a service based bussines with investments moving up to 15 million .
I belive the average investment from an ifa to an insurance company is about 50k this market will move to the web and tescos of this world.... its in the rdr.
Currently a good ifa will be in the 250 - 1,000,000 market place ,but the well run wealth management / new model will move to complete on advice service and cost against the private banks ,stockbrokers,etc
Good times
Rob Stevenson
17:24 | 14 Oct 2009
That's if you survive the capital adequacy changes and actually manage to compete in the post-2012 business environment.
It's so funny how many NMA firms are patting each other on the back about being ahead of the game on the RDR.
Most have not even read it, let alone given it some serious thought, in terms of how it and the proposed expenses based capital rules will affect every IFA firm, financial planner, new model adviser and so on and on...
Far from 'good times' its probably more like 'challenging times', or as the chinese proverb says 'may you live in interesting times'. We certainly are!
Rob P - Ive read the rdr
17:59 | 14 Oct 2009
Rob S
A well funded structured bussines has nothing to concern themselves with,this is the challenge of the rdr ,to move from a cottage industry,
I agree, most have not read the rdr,i have.
No silly questions............only silly answers
Rob Stevenson - My Point Exactly
14:06 | 16 Oct 2009
Rob P
There are very few well funded, well structured IFA businesses in the UK, so most of the market has much to fear.
Sounds like you have things under control, so congratulations to you.