And this is before we get anywhere near the ‘super clean’ chat. Unless I am missing the point, it is intended that this will force prices down (on average) in return for some distribution influence. It remains to be seen how effective this might be or how this squares with the bias-related due diligence obligations the FCA has imposed, but it doesn’t feel likely that discounted share classes will nudge prices up.
My money says that in the next three years, sector-wide retail asset management fee revenues will fall by more than those for platforms. And by the end of the period we’ll fully understand where the former started from.
David Ferguson is chief executive at Nucleus Financial