What do the vultures achieve? A better price for shareholders in the target firm. A prospect of juicy profits for the vulture. But what of the policyholders?
Many IFAs can attest to appalling service when the vulture is called on even for the simplest tasks such as valuations. These firms will not spend money on decent websites which can enhance the service . Many of the funds picked up are with-profits, with zero bonus rates and MVRs. The client is held captive while the vulture extracts the management charges from the fund, which is gradually sinking into the dust.
The regulator? Ah now, there is a thought. So far, these vultures have been found to be a lucrative berth for ex-regulators, so why would they rock the boat?
Norwest Consultants, Middlesex