In the third and final video in this series, Gina Miller discusses what the FCA report means for financial advisers — and she doesn’t mince her words.
Advisers.. are letting their clients down
“Individuals aren’t as actively engaged in their investments here (in the UK) as they are in the US. The majority are funds are still bought through advisers, so the pressure has to be on the adviser market. They are absolutely remiss in not recommending passives to their investors. That is where the change has got to start — very quickly.”
Advisers.. are conflicted
“(They’re given) soft commissions. They’re invited to lavish sporting events, flown around the world to conferences. And because the big fund houses spend so much on advertising, it’s so much easier for an adviser to put a glossy brochure across someone’s desk rather than doing their job, which is finding the best product for that investor.”
Advisers need to redefine their value proposition
“Where they add value.. is not in investments; it’s actually in financial planning. Advisers have decided over the years that they know better than investment managers, but actually they don’t. Their job is (financial planning).”