The data showed 51 per cent of advisers believed there was a lack of consistency from both wealth managers and platform providers around the disclosures.
According to AKG, 62 per cent of advisers said the ability of a platform and a discretionary fund manager to help them comply with the Mifid cost disclosure rules is sufficiently important to cause them to switch platform, with one third of advisers expecting to switch provider in the near future as a result of Mifid rules.
The data showed two thirds of advisers believed Mifid II has increased their workload, with the consequence that a third of advisers are contemplating increasing the minimum portfolio level they will accept before taking on new clients.
Minesh Patel, an adviser at EA Financial Solutions in London previously told FTAdviser that he has lifted the minimum portfolio size for new clients at his firm to £500,000 as a result of regulatory changes.
Mr Patel added: “A platform change has to be justified on more criteria than just Mifid. Issues such as cost or functionality where a clear benefit can be seen to the client are valid criteria. Mifid is adding work, the whole culture of being a financial planner is changing as regulation becomes tighter. But it is becoming tighter because there is still a lot of bad practice in the industry, and that is why the rules are coming in.”
Mike Barrett, consultant at the Lang Cat said his experience was that advisers were willing to switch provider as a result of the issues highlighted by AKG.
He said there remained a wide disparity between the best and worst providers in this area.
Matt Ward, communications director at AKG, said: "There is enough evidence here for DFMs and platforms to target continuous improvements with their reporting suite and to seek further transparency on charges in order to retain intermediary business. And further evidence about the importance of adhering to the Mifid II initiatives closely and expediently in order to ensure that clients are retained.”
"Major points of concern to emerge from quantitative and qualitative Mifid II market research carried out for AKG’s new paper are discrepancies, inconsistencies and challenges with costs and charges disclosure, as well as challenges with composition and delivery of ex-post reports/projections.”
AKG spoke with 100 advisers.
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