Investment trusts - time to shine?
Which ever side of the argument is correct it has become obvious in recent months that the RDR is starting to take effect.
For quite a while now the IFA industry has been dogged by questions over how much influence commission exerts over financial advisers’ investment decisions.
Which ever side of the argument is correct - and perhaps both are in a way - it has become obvious in recent months that the RDR is starting to take effect.
Platforms are reporting an increase in the number of investment trusts being taken up by their clients, which is what the IT industry had been hoping for.
As most people know, investment trusts do not carry commission as the investor is buying a share in a listed company, and the advent of the RDR has woken up IFAs to the reality that they are another option for them to use.
Whether this is due to the absence of commission, or other reasons, the trend is a sure sign that the adviser taking on new products available to them and considering the best interests of their clients.
Despite all the angst, and time needed to take the exams, if the RDR is forcing financial advisers to broaden their investment selection then this has to be a good thing.