Fees a hurdle for advisers
Providers charge up to 3% once all fees are included although many were hesitant to reveal them in detail, claiming commercial sensitivity.
Wrap platforms will likely become even more vital for investment advisers as they adapt to new DIMS regulations.
Ben Brinkerhoff, of Consilium, said the higher fees in the market could be a hurdle for investors. Consilium charges 0.75%, including investments.
“Three per cent does create a problem. If an adviser is using a balanced portfolio they might hope to get 7.5% or 8% before all fees. If you chop the 3% off, there’s a good discussion to be had about whether [the investor] should be in term deposits. That’s a discussion the adviser is going to have to argue against. Some wrap platforms are expensive, which would disadvantage advisers.”
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