I feel the need to rebuke Best Invest's Mr Spiers' comments in the Money Marketing issue of June10.
He says that despite the honesty of an IFA, the IFA will “favour products with the highest commission”.
I wish to know who he thinks he is, taking it upon himself to decide the business ethics of advisers, most of which he does not know, has not met and never will meet.
As IFAs predominantly investing in portfolio management, we undertake around 25-30 hours per month fund research to have a core of 30 fund managers from Oeic and unit trust houses to build and maintain a portfolio of such funds for our clients on an advisory basis.
We do not use insurance companies' funds. We will use an investment bond for trusts but only if it has external fund links with funds that we use for our portfolios.
We use the investments that are of most benefit to the client, not to the adviser.We also do not take the easy route by using fund of funds, manager of manager, thus providing value for money.
Mr Spiers' comments are not only irritating, they are extremely insulting.
He of all people should know (being in the position he is in) that this type of comment is just what a financial journalist from one of the daily newspapers is praying for.
While his success in restructuring Bestinvest into an adviser that does not accept initial commission should be applauded, given his comments above, one has to take a cynical approach and wonder if there is a hidden agenda?
He will know that a half to three-quarters of small IFAs could not survive without initial commission – there is nothing like getting rid of the competition. Fortunately,my practice would survive quite easily.
Principal,Fogwill & Jones