View more on these topics

Autif hits back at claim of &#39cheating&#39 fund managers

Autif is reassuring IFAs that fund management charges are fair and transparent following an article in The Sunday Times accusing the industry of “cheating” investors.

The trade association has gone public with correspondence between itself and the newspaper to underline its case. It is refuting claims that fund managers are taking billions of pounds in hidden fees each year and that half of all investment growth is lost to charges.

It says undeclared charges are accounted for by stamp duty, auditors, registrars and trustees fees. They average 0.5 to 0.7 per cent of the fund and do not go into fund managers&#39 pockets. It says the charges are taken directly from the fund, have a negligible effect on the consumer and are strictly regulated.

But the Press Complaints Commission has rejected a complaint made by Autif on the grounds the article is backed with a quote from the FSA that there have been no further complaints and that Autif as a trade body was not directly affected. Autif has now asked it to reconsider and argues it was representing its members.

It says a senior FSA official has stated that its quotes were taken out of context “to suit the storyline”.

In its original letter to the PCC, dated November 6, Autif complains the article, which appeared on October 1, was misleading, inaccurate and distorted.

It accuses the newspaper of failing to understand the regulation and operation of the fund industry.

Autif says it is continuing to fight for better disclosure in the industry but that current regulations already prevent the type of practices alleged.

Director general Philip Warland says: “The people who were most worried about this article were the IFAs, whose clients were coming in and asking what are all these hidden charges.”

The Sunday Times was unavailable to comment.

Recommended

Software firm buys IFA Grovewood

Global software firm Cincom Systems has acquired UK based IFA Grovewood Financial Management to market its Intelligent Customer Solutions software to financial institutions wanting to expand web services. iC Solutions&#39s Interactive Selling System enables companies with complex products and services to effectively sell across all channels, from direct sales to buying over the web. Director […]

Contradictory attitude to risk

Investors do not fully understand the concept of investment risk, according to new research carried out by Cleri cal Medical. The life office conducted a series of focus groups with target customers to gain some understanding of the barriers consumers have to investing in unit-linked funds and their rationale in the trade-off between risk and […]

Rights of passage

Over the last few weeks we have been talking about the various ways in which a claim may be made against a spouse&#39s accrued pension rights in divorce settlements. What we have not yet done, however, is examine the chances that such claims might succeed. It is not automatic that a claim must or even […]

IFAs give polarisation overwhelming backing

IFAs have overwhelmingly given their backing to the current polarisation regime, acc ording to a survey by IFA the Lighthouse Group. Its research found that 98 per cent of IFAs believe the Government&#39s plans to relax polarisation will cause confusion and clients will not rec eive appropriate advice. The survey questioned 160 IFAs in England […]

The Merchants Trust PLC – April 2017

Welcome to the latest update for The Merchants Trust PLC from the Trust’s portfolio manager, Simon Gergel. Portfolio Review The Merchants Trust reported results this month and the directors were pleased to announce a 35th consecutive year of dividend growth (subject to shareholder approval at the AGM). The Company is proud to be highlighted as […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment