Sunday, February 27, 2011

Investors charged rip-off fees - Telegraph

Investors charged rip-off fees - Telegraph

20% of the capital sum went in commission?

I find that figure to be excessive in the extreme, no I would contend that your memory has faded or your forgettery has increased substantially in size.

If you have the evidence which supports your public statement please send it to Paul Farrow or retract the statement in its entirety.

No, seriously, I do accept your suspicions and the urban myths which surround, and cloud, the advice process but making sweeping tatements in public which are not based on the situation as a whole, as Alan Steel does quite regularly, is putting more doubt in the minds of people who might benefit from advice which is not a single shade of grey as is the case at a bank branch. It is unhelpful - unless you are promoting your own self interest of course.

Yes there is 'commission bias' but there is also 'fee bias' or 'fee building' as it is called. What is the answer? The government proposes 'simple products' without considering that such products can become very complicated if bought by someone who either doesn't understand them or more importantly doesn't really need them, particularly when their circumstances change in future as they surely will.

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