Overhauling the UK investment platforms market
By Kirsten Hastings, 21 Sep 18
AJ Bell boss calls for more disclosure, guidance, transparency and the removal of a ban
Improved standards and transparency for model portfolio disclosures
“The issues identified in the interim report around the consistency of labelling and risk descriptions of model portfolios have been an issue for some time, but the solution is not to impose greater degrees of commoditisation into a market which has become increasingly more commoditised over time,” said Bell.
“This will stifle innovation, reduce customer choice and is likely to create unintended barriers for new market entrants as price becomes the only means by which products and services may be differentiated.
“A better solution would be to provide a level playing field between the worlds of funds and model portfolios, recognising that the risks and rewards associated with such products and services have a high degree of overlap. This would require a significant raising of standards and transparency for model portfolio disclosures which we would support,” Bell concluded.
