Is this the fault of advisers, overpricing their advice? Are the ignorant masses to blame, not knowing what’s good for them? The answer I think, is neither, or perhaps a bit of both and a bit of ‘the other’. The price of advice is a function of demand and supply. There are many fewer advisers (see last week’s comments) than there were a couple of decades ago, so those remaining will gravitate to the most profitable clients. And if you don’t think you have a problem, why would you pay to solve it? ‘The other’, in this case, is the internet, which can turn us all into doctors, car mechanics, plumbers, electricians; and very easily allow us to invest our money, get a mortgage and ‘move all your old pensions to one, simple, easy-to-manage plan’. All good if the symptoms go away, the car doesn’t break down again, the radiator works and the fuses don’t blow. If not, you’ll need a professional. Later or sooner, I’m afraid.
“Letter of authority: Why now is the right time for change”
This may sound like a non-issue from outside the world-of-financial-advice bubble. It is the bain, however, of the daily working lives of many of us, particularly of those paid by we advisers to do the dirty work of dealing with the many providers with whom we have to work.
