The Hargreaves Lansdown quoted charge is partially accurate. Those that still seek and add the cost of ongoing advice find that there is little or no saving overall.
Adviser charges are now understandably higher post-RDR, compared to the previous trail commissions. Much of the fund savings are eaten up by the increased adviser charges. That is clarity – post-RDR we are clearly more expensive than we used to be.
I have yet to meet a truly happy DIY investor. When it comes to their planning, most are lonely and sad. They are in constant denial and have selective memory that helps counter their true losses caused by foolish or rash decisions. Even financial advisers struggle to advise themselves, so you really do need a third party.
RDR was in part designed to drive down overall costs. However, it was also designed to reduce adviser wealth. The FCA will continue to create new directives until the high earning entrepreneurs are driven out of the industry and replaced with what? Accountant managers? An industry regulated by the dull, advised by the dull, serving everyone a bland grey porridge?
Paul Scott
Senior Financial Adviser
Scott Financial
Hartley Wintney
