Mifid II’s fee disclosure demands are pushing UK advisers to expect the same level of transparency from wealth managers and platforms. According to consultancy firm AKG, a study of 100 advisers showed 51% agreed wealth managers and platform providers didn’t deliver consistency. What’s more? 62% of the advisers stated that a platform or discretionary fund manager being able to guide them through Mifid II’s cost disclosure rules was enough motivation to make them switch over to a new platform. In fact, a third of the advisers anticipate just that in “the near future.”
Mifid II means that the platform an adviser uses for his client must benefit the client, rather than the adviser. This eliminates an adviser using a platform for any sort of “commission” gain. Using a platform and a fund manager that is in the best interest of the client can also mean multiple platforms and fund managers per client. Ultimately, it’s up to the adviser to disclose all fees – including the fees they don’t set themselves. The easier third parties make it to tally up their fees, the better informed advisers are, and the more transparent they can be with their clients. And they must be transparent.
Matt Ward, Communications Director at AKG tells FTAdviser, “‘There is enough evidence here for DFMs and platforms to target continuous improvements with their reporting suite and to seek further transparency on changes in order to retain intermediary business.'”
