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Chance was missed on depolarisation

The AITC says the FSA missed an opportunity to promote the marketing of trusts during the consultation on depolarisation.

Director general Daniel Godfrey told last week&#39s Money Marketing/Sway round table meeting at Somerset House that the regulator could have done more to help by unbundling the cost of advice from the sale of the products.

Investment trusts are lagging behind unit trusts because IFAs prefer their commission structure. In a depolarised advice market, IFAs will have to offer clients a choice of paying fee or commission.

Sway chief executive John Maguire argued that marketing teams should have ensured that investment trusts were represented in multi-manager and fund of funds portfolios and were made simpler so they could be included in wraps.

Baillie Gifford sales and marketing director Ken Edwards said: “This represents an opportunity for investment trusts that we have to try and take. There are marketing challenges coming up. We have to also look at charging structures.”

Godfrey said: “There is plenty more the AITC can do in terms of the structural issues with investment trusts and in terms of commission. We were quite active in the depolarisation debate.

“We saw that as an opportunity and now we see that as a missed opportunity. We are not against commission but we do believe that there are times where it is not appropriate.”

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