True and Fair Campaign comment on platform price war
22nd January 2014
SCM Private, founder of the True and Fair Campaign, is questioning the benefit to investors of the so-called platform war. It believes that these companies are passing on precious little of their economies of scale and instead are rewarding customer loyalty with higher charges than their smaller competitors.
Gina Miller, founder of the True and Fair Campaign and SCM Private said, “Fidelity, like many of its peers is missing the bigger picture. If they and other brands had the courage to break away from the pack and do the right thing by giving investors and savers, a simple Total Cost of Investing, consumers would be significantly better off. This one number should include ALL the costs that are deducted from investor’s pockets – fund manager, wrapper and platform fees together.
Posted By: True and Fair, 3:34 pm
“Unfortunately what we’re left with is more akin to the Monty Python fish slapping dance!
“Until the FCA finally addresses this fee farce, where nobody knows the true total cost, trust will never be restored. The increasing number of investors trying to avoid excessive costs by doing it themselves will end up miss-buying rather than being miss-sold savings and investment products. For instance, for investors with less than £250,000, the bigger platforms are not as competitive as their smaller rivals.”
To date the free on-line tool, www.trueandfaircalculator.com is the only way for consumers to navigate the industry cost maze as it allows consumers to calculate the likely reduction in yield from their investment pots and takes into account all fees, at all levels, and gives a Total Cost of Investing in pounds and pence.