Advisers face questions over who pulls the strings
Wednesday, 9 May 2007
Elaine Moore of the FT on May 4 2007 commented on the debate of commission v fees. Go to the article here
I was interested in the comments made by the FT regarding the confusion over commissions or fees. The debate will continue for years to come simply because the commission based model keeps thousands of people in jobs and companies selling products.
There is never a week that goes by without receiving an email from the marketing department of insurance companies with some special offer for investors, such as ‘extra allocation’ or ‘improved terms’. But these offers are not with reductions in commission terms, in fact, it is often quite the opposite. Of course the advisers to whom they are directed need not take any notice, but the marketing departments clearly know that their strategies work... they do influence advisers, so they keep the message flowing. No wonder investors will remain skeptical. When commission ceases to become part of the discussion process, only then can impartiality be relied upon.
I recall some simple words of wisdom repeated to me some time ago…”…take the view that the most uncompetitive products need a commission included in order to sell them. If the product was that good, it would sell itself. Investors would want to buy rather than being sold!”
Not only the FT are writing about this debate, so are The Times, click here
Cateogories: Commission, Fees, Philosophy
posted by Murray Round Wealth Management @ 17:10,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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