View more on these topics

Investors hit out at advice firm ‘charging 15%’

Hong-Kong-China-Asia-Victoria-Habour-700.jpg

A website has been launched claiming that international advice firm deVere Group is “hard-selling” to clients and charging fees of up to 15 per cent.

The Telegraph reports claims by the website that deVere is taking 9 per cent for initial advice and 6 per cent when money is invested in funds.

The website also claims charges of up to 9 per cent apply when clients wish to transfer funds.

DeVere, which does not publish fees on its website, provides financial advice to ex-pats. It has more than £6bn of assets under advice and over 80,000 global clients.

Last month a Hong Kong regulator suspended deVere’s licence as part of an investigation into the firm.

The website claims: “Behind all the expensive promotional material and PR, it is really just a sales company which has developed a reputation for aggressively and indiscriminately selling financial products to people for whom these services may be inappropriate.”

A deVere spokesman told the Telegraph: “Our charges are lower than industry averages and our size gives us unique access to the top investment managers in the industry. This competitive advantage sometimes causes a jealous reaction from other brokers. Obviously this is a disappointing reaction to a company that seeks always to provide the best in the market.

“We are actively pursuing all legal avenues to defend the company’s reputation. We expect the site, which contains highly defamatory, malicious and false content, to be removed very soon.”

Recommended

Paul Lewis Peach 250x255
46

Paul Lewis: How can we clean up charging structures?

I bought a washing machine the other day. An LG. £799. I know, I know, it was expensive but it gave me a lot of choice and had very good performance reviews. I rang a local plumber to fit it, who asked me the make and model and quoted me £279.65. “That seems a lot,” […]

Stressed-man-on-phone-angry-700.jpg
1

Advice firms hit back over fee disclosure claims

Advisers have hit back at claims they are failing to disclose fees on their websites after a survey found just 10 per cent of firms provide details. Research by IFA Candid Financial Advice found that just five of the UK’s largest 50 advisers detail charges for financial advice on their websites. Candid founder Justin Modray […]

Money-Notes-Currency-GBP-Pounds-700.jpg
1

D2C platforms attacked over exit fees

Three leading direct-to-consumer platforms that charge exit fees have been accused of making customers pay for their own failure to bring down the costs of transferring assets. Last week, Axa announced customers on its Self Investor platform would be given up to £750 towards the cost of paying exit fees levied by ceding providers. Axa […]

Chris-Hannant-glances-from-a-profile-pose-700.jpg
15

Apfa writes to Govt over ‘unjustifiable’ hike in adviser fees

Apfa has written to the major political parties to urge a rethink of what it terms an “unjustifiable” 10 per cent increase in advisers’ FCA fees. In a paper on proposed fees published in March, the FCA said A13 advisers will pay £74.9m in 2015/16, up by 10 per cent from £68m in 2014/15. The […]

Oil industry: only the fittest will survive

The actions of OPEC have forced the oil supply to fall and producers to cut costs and rationalise, says Richard Hulf In an interview with journalist Alexis Xydias, Richard Hulf, manager of the Artemis Global Energy Fund, explains the impact of the fall in the oil price on energy companies. Alexis also quizzes Richard on […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. I suspect publishing their charges on their website would be a help.

  2. Explaining the relationships they have with the providers the salesmen use would also be of help.

  3. ” Our charges are lower than industry averages” is a safe benchmark to use when you cannot justify what you are charging for services. This assumes that the industry average is correct, when it probably resembles the old commission structure. Far better to focus on the quality of service that you provide at a fair price, irrespective of what other firms charge.

  4. Ok, so two points I suppose. 9% of £1,000 is 90 quid, not a huge amount except one would have to question why someone was ‘investing” a grand. 9% of a million is somewhat different when all that’s changed is a few noughts on the application form.

    The second point however is where does advice versus the sale of a product become the recognisable differentiator? I have no axe to grind either for or against De Vere, you pay your money and take your chances. I think as with say Waitrose, people buy the name. It’s still spaghetti in the pack.

  5. They should be able to charge what they like. If punters dont like it, go elsewhere? Am I missing something?

  6. I think the public get told what the ” norm” is, but are none the wiser as to whether that is good value. Safety in numbers, but more and more consumers are doing a bit more homework on charges so some advisers will have to up their game or lose out.

Leave a comment