The changing face of financial advice

You may be seeing lots of media coverage at the moment about important changes in the provision of financial advice taking effect from 1st January 2013 and introduced by our regulator, the Financial Services Authority

These changes relate to how financial advice is paid for and the levels of qualification needed to continue providing this advice.

We have always avoided the commission route and in 2005 we moved to an explicit fee charging structure, whereby our fees are clearly shown as a deduction from investments.

We have also encouraged our staff to continue their professional development. We were one of the first firms in the UK to achieve Chartered status meaning we have achieved the highest level of qualifications needed.

As a result, there will be no material change to our service from 1st January 2013 and we continue to provide relevant, tailored, independent advice based on what’s available from the whole of the market.

It is interesting to note that many apparently free bundled investment platform and SIPP providers who were able to rely on kick backs from the fund manager have now announced unbundled charging structures charging separately for custody, dealing and administration typically with a fee of 0.2-0.3% per annum similar to that payable by most of our clients. The adviser charge is then added on top as an explicit charge in the same way as BpH has worked since 2006.