Clarity about Financial fees

Santander was fined £12.4m last month by the FCA for serious failings in the way it sold thousands of customers’ investment products. It seems that many firms offering investment advice are not being clear about their fees, and some may even be misleading. The Financial Conduct Authority FCA has recently turned its attention to financial advisors and it says it has uncovered what appear to be widespread failings in the way firms selling investments, pensions and other products disclosed information on their costs and services.

An official ban on commission paid to financial advisers came into force at the end of 2012, with firms and individuals forced to charge a fee for their services rather than hiding costs in a product's charges. The changes have prompted many banks to exit the advice market, either partially or fully, thereby creating what some have dubbed an "advice gap" for mainstream consumers.

The FCA has recently surveyed 113 firms – including banks, small and large financial advisers, and wealth management firms – to see how they had implemented these so-called disclosure rules, and said it had found that "too many" were not being clear with consumers.

The FCA found 73% of firms had failed to provide the required information on the cost of advice. For example, 58% failed to give customers clear, upfront general information on how much their advice might cost, while more than a third either failed to provide a clear explanation of the service they offer in return for an ongoing fee, or failed to properly outline the customer's cancellation rights. If you want to understand fees involved in your investments Enable’s IFA’s will clearly talk them through.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE