Investors do not realise that they can have a say over how commission is allocated, according to a free guide from Investor Connections.Managing director Matthew Morris says investors begrudge paying commission of 7.5 per cent on investment bonds but few realise they reach an agreement with an adviser. The guide, The Generosity of Insurance Companies, explains how to differentiate commission from the initial charge on an investment bond and sets out how insurance companies calculate commission. Under current regulations, the adviser has to consult the investor on how commission is treated and must get their authority to proceed with an arrangement. Morris says: “It is a highly competitive market for insurance companies and they are keen to offer incentives for consumers to invest so there are clearly benefits to be gai- ned by the investor who understands how to play the comm-ission game. “We find that potential investors often do a simple calculation and think they are going to have to pay out 7,500 worth of commission if they invest 100,000 through an adviser. Not surprisingly, they see that as a lot of money for not a great deal of work and do not realise that they can negotiate how the money is treated and effectively retain it for themselves.”
The controversial move of the 30m Quantock UK growth fund from Matrix to Marlborough demonstrates the power wielded by managers in disputes over the control of their funds.
The BSA accepts that firms which have been newly regulated since M-Day are still going through a bedding-down period but says there is confusion in the market over FSA criteria for KFIs. The comments follow an FSA mystery-shopping exercise in August which showed that 55 per cent of lenders and advisory firms did not issue […]
A medium risk equity fund will be the first product launched by Bank of Communications Schroder Fund Management Company.The new fund will be available to investors on August 26, holding 40 per cent in core defensive stocks, 30 per cent in cyclical growth stocks and 30 per cent in cash. It will also be allowed […]
Cordea Savills, the fund management arm of the Savills property services group has established the serviced land fund which will trade in land.
Jamie Clark – Business Development Manager The recent report from the Pensions Policy Institute demonstrates the sheer scale of auto-enrolment so far and what we can expect in the future. We’ve pulled out the key information to save you reading the full report. Auto enrolment in numbers Sources: Pensions Policy Institute, The Future Book: Unravelling […]
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Offsetting the cost of advice this way would benefit clients and advisers alike One of the multiple barriers to better take-up of financial advice is that some people are unwilling or unable to meet the upfront cost. In response to this, the government has allowed people to take small chunks (three lots of £500) out […]
Fund managers like to trade off having a unique style. There thousands of funds out there to choose from – the question I often hear from advisers is: what makes this person different? Sometimes this can be a really tough one to answer. “We invest for the long term” is all fine and good, but […]
With rising costs and an increasingly tough regulatory market more advisers are looking to outsource their investment proposition, with many leaning towards discretionary fund managers. But while the number of advisers using DFMs is on the up, overall satisfaction with them has dipped. According to a recent survey by financial information firm Defaqto, 74 per […]