View more on these topics

Hargreaves hits out over ‘reckless’ fund sales

Hargreaves Lansdown chief executive Peter Hargreaves says repricing property funds is like market value reductions on with-profits funds, with the loudest complaints coming from IFAs who “recklessly” piled clients into them.

He says many IFAs “took the least line of resistance” with investors, making easy prop-erty sales, just as they sold too many single-premium with-profits bonds, and now many are unhappy they cannot pull their money out of the market at net asset value.

He says: “There is a definite ring of déjà vu. Many IFAs who recklessly took the least line of resistance with their investors and placed far too much of their money in property bonds will feel aggrieved, as they did when they sold too many single-premium with-profits bonds.”

Hargreaves believes fund firms that run property funds without the backing of a major life company will be the worst hit as they cannot sell properties to their life and pension funds to provide liquidity for retail fund outflows.

He criticises commentators for claiming that companies are not treating customers fairly by introducing pricing changes, when the firms are looking after long-term investors.

Syndaxi Financial Planning managing director Robert Reid says: “My issue is not with the fact that these are long-term funds with short-term corrections but that the communication of these pricing changes has been appalling.

“The asset allocation indicates that most of these funds can cope, yet these firms have made these decisions. It is the poor communication that has led to people jumping to conclusions.”

Recommended

School’s out for IFA

I was disturbed to read Professional Brief (June 21) and the criticism of IFAs by Filip Slipazcek. The sheer pressure and daily grind of trying to make a living while at the same time complying with an ever broadening legislative requirement, to say nothing of keeping up to date with the professional press and constant […]

John Castagno joins Cardif Pinnacle

John Castagno has joined Cardif Pinnacle as new product development and marketing director.Cardif Pinnacle, part of BNP Paribas group, is a provider of creditor, warranty and special risks insurance.Cardif Pinnacle chief executive officer Paul Glen says: “I am delighted to welcome John. He brings with him a wealth of knowledge and experience which will greatly […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com