View more on these topics

MM leader: Cofunds reversal and welcome DFM warning

Cofunds’ reversal of plans to convert all bundled investments into clean share classes when re-registering off the platform is a welcome move.

The firm provoked adviser anger by introducing the policy when big rivals do not offer corresponding clean share classes.

It added needless complexity to the re-registration process and meant an end to the adviser’s trail, due to the transfer being treated as an advised event.

Instead, Cofunds will now allow both the re-registration off platform in the share class the investor holds or in a clean share class.

Cofunds says it was forced into the U-turn by what it considers the failure of rivals to join the new “clean transparent” RDR world.

However, the platform had always known that rivals such as Skandia and Standard Life would be pursuing very different share class tactics.

Whether an over-eagerness to be seen as crusaders for transparency, two fingers up at rival propositions or a hurdle to business seeping out the back door it has turned into an own goal.

The episode also highlights the fund charging complexities evident in the market. Recent Money Marketing investigations have highlighted both the huge variations in clean share classes available across different platforms and discounts investors can receive through the unit rebate model.

Comparing clean share classes, discounted clean share classes and different unit rebate models will not be easy.

The complex landscape creates more question marks over the FSA’s bizarre decision to ban cash rebates due to concerns they would “hinder transparency”.

It is hard to see how Financial Conduct Authority chief executive Martin Wheatley’s goal of great transparency driving down fees will be achieved given the current messy situation.

Firms retain advice responsibility

FSA technical specialist Rory Percival’s comments on DFM due diligence are a welcome reminder that while advisers can outsource investment management, they remain responsible for the advice.

The regulator is concerned over a possible mis-match between the risk profiling being done by the DFM and the adviser firm and is calling on advisers to make sure these are aligned.

Outsourcing elements of your client base to a DFM or other investment proposition can offer client benefits but the decision must be properly justified and regularly monitored to ensure their best interests are being served.



Lloyds sets aside nearly £4bn for misselling but cuts losses to £570m

Lloyds Banking Group suffered a pre-tax loss of £570m in 2012 as a result of it having to set aside nearly £4bn to pay claims relating to the misselling of financial products, among other costs. However, today’s results represent a significant improvement on the £3.5bn loss the year before. The bank reveals a £3.5bn provision […]


Advisers want vocal support from new Tenet director

Tenet advisers have welcomed the speed with which the network has replaced outgoing distribution and development director Keith Richards but say Helen Turner must be as vocally supportive of advisers as her predecessor. The network announced last week Turner would replace Richards who is leaving to become Personal Finance Society chief executive. Turner is currently […]

BBA: Gross mortgage lending down 8% in January

Gross mortgage lending dropped 8 per cent in January to £7.7bn, down from £8.4bn in December, according to figures from the British Bankers’ Association. The BBA says gross mortgage lending came in higher than the six-month average of £7.6bn, but adverse weather conditions impacted lending in January. The value of overall mortgage approvals fell from […]

The Investment Clock: Keep calm and Macron!

Trevor Greetham, Head of Multi Asset In a marked contrast to the surge in risk sentiment that followed President Trump’s election in November, markets greeted Emmanuel Macron’s victory in the French presidential election with satisfaction and relief, rather than euphoria. After rallying strongly on opinion polls that accurately predicted the outcome, the euro held onto […]


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