How IFAs can access ETFs

Retail investors account for 40-50% of ETF investors in the US but only 10-15% in Europe. The use of ETFs is likely to increase significantly among Independent Financial Advisers (IFAs) in the UK based on regulatory proposals. These were originally outlined on 25 November 2008 in the Retail Distribution Review (RDR) feedback statement, by the UK’s Financial Services Authority (FSA). In the US, fee-based advisers, paid by the consumer, have embraced the use of ETFs to a greater degree than commission-based advisers, who are paid by the product provider. In the UK the use of ETFs among IFA...