Bringing you live news and features since 2006 

Crossed fingers

Wealth Management firms still vulnerable over fees, says Bovill

RELATED TOPICS​

Wealth management firms are still leaving themselves vulnerable to regulatory action by failing to meet the FCA’s expectations on fee disclosure, according to financial services regulatory consultancy Bovill.

Bovill says that the findings of the FCA’s latest thematic review (published December 16) following the Retail Distribution Review (RDR) revealed that the Wealth Management industry is falling behind on fee disclosure.
 
The FCA says that where charging is based on a percentage of the funds invested, 36% of Wealth firms failed to provide a cash example to show how much a client can expect to pay for initial advice.  This compared to 15% across the financial advisory industry as a whole.   50% of Wealth firms failed to provide a cash example of ongoing advice charges, compared to 18% across the industry as a whole. 
 
Neil Walkling, Wealth Management and Banking Consultant at Bovill, says: “While the FCA was broadly positive about the impact of the RDR so far, it has singled out wealth managers for criticism over meeting standards of disclosure on fees.
 
“This is the third time that the FCA has investigated disclosure of advice costs since the RDR reforms came in two years ago. So firms have been adequately warned – and regulatory action taken against firms still not getting it right will reflect that fact.”
 
“Providing an actual cash example of a percentage based fee structure is straightforward to do; firms should double-check their tariff of charges and make any necessary changes straightaway. Similarly, the thematic review findings show that, while some advisers might consider the option of offering an hours-based charge a competitive advantage, if that charging structure doesn’t give clients an indication of likely costs in the manner expected by the FCA then it could turn out to be a liability.”
 

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Thomas Bonville, Clear Street
Just over a year ago, Thomas Bonville joined New York-based, prime brokerage Clear Street as managing director, head of derivative...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by