View more on these topics

Warwick in attack on fee-based adviser ‘arrogance’

Former LIA president Len Warwick has stormed into the commission debate, accusing some fee-based advisers of exhibiting “snobbery” and “arrogance” by attacking commission.

Warwick, chairman of Warwick Butchart Associates, says many consumers prefer a commission-based payment structure.

He says: “Some of us have been around for long enough to appreciate that to some consumers, and not only the less well-off, commission represents the easiest payment method.”

He says that while many IFAs who work on a fee-only payment structure have created stable practices with a strong base of valuable clients, it is unfair to judge others who charge their clients commission.

He says: “The arrogance of advisers that impartiality is not possible in a commission structure and that fees are beyond reproach is too simplistic. We can behave professionally or unprofessionally, however we are paid.”

Warwick says all advisers want to be paid for what they do and whether it is through commission, an hourly rate, a fixed fee, a percentage of funds under management or a retainer, the charges are fully disclosed to the consumer.

Recommended

Hedge hope?

A number of industry experts gathered at Money Marketing’s offices last week for a hedge fund roundtable and as you would expect the discussion produced as many questions as it did answers.

FSA to scrap the menu and IDD

The FSA is to scrap the menu and initial disclosure document after concern from the European Commission that they would not be allowed as an add-on to Mifid.

FSA warns lenders again of sub-prime crash

The FSA has renewed its warning that UK sub-prime could go the same way as the US market and says lender vulnerability is beginning to show through.Speaking at the Building Societies Association annual conference in Bournemouth last week, FSA managing director of retail markets Clive Briault said all lenders, including building societies, should ensure they […]

Marsden and LV= link up on products

Marsden Building Society and LV= have announced a new strategic partnership.From September, Marsden will be offering LV=’s range of investment, life insurance and pensions products, advised by the friendly’s tied financial advisers. Marsden Building chief executive Neil Shoesmith says: “The partnership with LV= will enable the society to offer members a broad range of investment, […]

Neptune video: Indian valuations and Modi’s pro-investment agenda

Kunal Desai, Head of Indian Equities, discusses his expectations for the Indian market and highlights the key indicators that he is watching for 2015.

In the video, Kunal addresses:

• Indian equity valuations and the importance of stock selection in gaining exposure to the earnings upgrade cycle

• The BJP’s strengthening ambition in its pro-reform, pro-investment agenda

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment