Greater transparency in the wake of the retail distribution review could continue to drive down the cost of investing, Vanguard head of retail Nick Blake has predicted.
Mr Blake said the RDR, which came into effect at the start of 2013, had accelerated a move towards lower-cost index funds.
He noted that when Vanguard surveyed approximately 1,000 investors, asking them to measure the value clients placed on advisers, an approximate score of 73 had come back.
Mr Blake said: “We expect RDR to continue to unfold, with quality of advice rising and investor outcomes improving, as planned.”
He added: “We also expect greater transparency on costs to bring a closer examination of what investors are paying for, and whether it is good value.
“This will naturally exert continued downward pressure on the cost of investing in both index and active funds.”
John Stirling, chartered financial planner for East Anglia-based Walden Capital, said: “Broadly, the RDR has been better than expected, but the gaping hole is the industry has not worked out hope to do the low-cost advice for the mass market effectively.”