Many an experiment in financial services and elsewhere has proven that cost is not actually the issue. Low-charging stakeholder pensions did nothing to increase savings to retirement. They had, in fact, the opposite effect, as companies and advisers had little incentive to market and sell them. Most of the cheapo-online-DIY investment platforms are losing money and both the banks and big insurance companies no longer advise as the profits aren’t there anymore. It’s having and realising they have a need which will make the unadvised seek advice. And when they do, they’re happy, in my experience, to pay for a good service.
“Advisers fearful of further compliance and regulation”
We know, of course we know, that regulation is, or at least should be a ‘good thing’. If those who need or should seek advice can be confident that they’ll be told the right thing, that someone has looked at those ’too good to be true’ investments before they’re allowed to take your money; or, in the case of a Woodford, while they’re raking it in to make sure it’s going where it’s supposed to.
