I refer to Julian Stevens's letter (Money Marketing, May 23) issue concerning fees commission is the first sensible letter on this debate that I have read. I wish I had the time to write similar letters to other interested parties.
I agree whole-heartedly with his comments and criticisms, which are well founded and hopefully thought provoking for the fee-encouragers.
Of course, fees will not work for the majority of small to medium-sized IFAs -it is totally impractical.
What client in their right mind (who is not a millionaire) is going to pay for the travelling time, phone calls (based on 15-minute units), meeting time, correspondence costs, reports, VAT, etc?
We know it will not work as we have tried this arrangement and all clients who were charged on a fee basis reques-ted to revert to a commission-based service again.
A fee-charging structure is for the IFA who provides an in-depth, possibly specialist service to a few well-heeled clients. It is not for us – the IFA looking after the hoi polloi.
It is just not going to work and I am quite sure I speak for the majority of smaller and medium-sized IFA firms.
Rothberg & Co, Barnet, Herts