Online article headlined, Another open letter to the BBC’s Paul Lewis (hopefully the last)
The problem with this debate is that there needs to be an education campaign on behalf of the IFA community to educate clients on charges. For too long, the industry has relied on product charges which although I believe are fair and contractually sound, can be perceived by some, as in Mister Fully Informed, as wrong.
The main point of charges is to come up with a system which compensates the adviser for their work. Unfortunately, many of the UK population do not have the resources to fully fund advice charges upfront as not everybody in the UK are either millionaires or earning over £75,000 a year and therefore contractual charges have become a necessity.
The alternative to this would be to have initial charges funded by some form of finance agreement which I am sure would put off the majority of the public from receiving advice.
As mentioned by others, in no other industry are we expected to work for nothing. A good example given earlier was, would you expect a plumber to replumb your house for no pay or a journalist to write an article for nothing? The answer is no.
So why is it that IFAs are expected to pay high regulatory fees and staffing costs and not receive any remuneration?