View more on these topics

Fidelity fires back at Sandler commission claim

Fidelity has taken issue with Ron Sandler&#39s claim at the recent Aifa dinner that IFA clients are only satisfied with advice because they think it is free.

The company says it is hard to believe that customers can have this misconception, given the levels of disclosure by advisers.

It also points to evidence of higher satisfaction among IFA clients than direct investors and a growing number of consumers in the US buying funds through advisers despite higher initial and annual charges.

Fidelity&#39s analysis found average monthly returns have been better for advised investors than direct investors over the past 10 years. It found an IFA client investing £1,000 in the UK All Companies sector in July 1991 would make £3,518 by June 2001 on an annualised rate of 13.4 per cent, while a “DIY investor” would end up with £1,885 on a rate of 6.5 per cent.

Its research shows 50 per cent of IFA clients are satisfied with their investments compared with 34 per cent of non-advised.

In the US, it says the percentage of households buying funds through an adviser was up to 84 per cent in 2000 from 50 per cent in 1998.

Fidelity Investments head of IFA business Stuart Holah says: “We disagree that people value things more when they are free. Generally, people attach most value to commodities or services that they have paid for.”


Flight warns the FSA over the perils of offering &#39advice&#39

The FSA is coming close to offering advice and could be guilty of misleading consumers if it continues on its present path, warns Conservative Shadow paymaster general Howard Flight.Flight&#39s warning comes as the FSA finally receives its full statutory authority at N2 on Friday at midnight.When taken together, decision trees, comparative information tables, fact-finds and […]

Product matters

Platform Home Loans&#39 light-averse offering has all the features one would expect in such a mortgage but is probably most suited to discharged bankrupts or borrowers who have been subject to an individual voluntary agreement, since they will least likely be able to obtain a mortgage from a mainstream lender.Many lenders are more willing to […]

Legal & General – Self-Certification Tracker Mortgage

Thursday, November 29, 2001.Type: Self-certification tracker mortgage.Tracker term: Three years.Tracker rate: Bank of England base rate plus 0.5 per cent.Minimum loan: £25,001.Maximum loan: Up to 75 per cent of valuation subject to a maximumof £500,000.Income multiples: 3.5 times principal income plus second or 2.75times joint.Arrangement fee: None.Redemption fee: 5 per cent of amount repaid in […]

Find your path in payments maze

There has been a great deal of publicity in recent years over the issue of mortgage repayment. There are two main methods – interest-only and rep-ayment or capital and interest mortgages.Interest-only mortgages involve a borrower in making payments of interest to the lender with no repayments of capital.The loan is instead repaid at the end […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm