Cherry Reynard

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Is advice still being cross-subsidised from elsewhere?

Vertically integrated firms continue to make a loss on advice arms, but change might be afoot For larger advice groups, vertical integration remains the model of choice. Integrating advice, wealth management and platforms, they argue, gives a better service to the client, tighter management of risk and allows servicing of a broader range of customers. […]

Consolidator review one year on: Have IFA acquisitions changed?

A year after the FCA reviewed advice firm consolidators, big players are continuing to buy up financial planning businesses with little further protest from the regulator. AFH, for example, started 2018 with a bang, announcing that it has acquired the assets of Hertfordshire advice firm Monopoly Financial Consultants in a £600,000-plus deal. It caps a […]

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Can contingent charging stand up to criticism?

Contingent charging is being thrust into the spotlight again as clients continue to pay for defined benefit pension transfers, but an outright ban does not look imminent. The FCA has long warned charges that depend on a particular outcome – ‘contingent’ fees – are a higher risk for IFAs. They may not affect the outcome […]

Investment
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How short can you make a suitability report?

Advisers and the regulator have reached agreement that many suitability reports are too lengthy. The longer the reports, the less enthusiastic clients become. In its suitability review earlier this year, the FCA found many suitability reports were too complex. But is it possible to make them shorter? The FCA has provided a number of examples […]

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Asset allocation: Henderson’s de Bunsen nervous on corporate bonds

Does the corporate bond market know something everyone else doesn’t? This is the question currently occupying Henderson multi-asset team fund manager James de Bunsen. Credit spreads are widening materially, more than the underlying data would appear to merit, and for de Bunsen it warrants some caution. He says the problem might be explicable were it simply high-yield […]

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Are bond managers risking returns for liquidity?

It will not have escaped the notice of many investors that bond market liquidity is tight. Fixed income fund managers have – largely – acknowledged the problem and outlined the steps they are taking to deal with it. But this generates the new problem of whether steps taken to mitigate liquidity problems end up denting the […]

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Ian McKenna: Cofunds best at supporting advisers’ digital efforts

Two weeks ago I looked at the various microsite options Cofunds make available to advisers to enable them to provide clients with online access to their portfolios. While this is helpful, ideally, an adviser firm wanting to take full advantage of the digital world should be looking to provide an holistic summary of a client’s […]