In response to Malcolm Murray’s letter (Money Marketing, August 2), I must call his assumptions into question.
Given the importance of the retail distribution review, the last thing we need is statistics which are unsubstantiated and then become definitive due to a lack of challenge.
Malcolm stated that the loss of offset was not as bad as David Elms and I had indicated. What his numbercrunching ignored was that despite many IFAs receiving fees for money under management, this is not 100 per cent of their turnover and in most cases I doubt if it is more than 30 to 50 per cent.
So the loss of offset is a problem but aren’t we all pushing in the wrong direction? If all advice fees were tax-relievable, as in the US, then many of these problems would disappear. Perhaps that is what we should be lobbying for – the equal playing field between commission and fees.
As the consultation proceeds, we must research far more detailed statistics on IFA firms and not rely on guesswork by either Murray, Elms or Reid.
Syndaxi Financial Planning