AFH has been tooting its own horn about scrapping platform fees for clients and taking on the cost burden itself yet, writes Tom Ellis, this is not a model many advisers could - or even should - seek to emulate
At first glance the decision of growing consolidator AFH, as a business, to take on clients' platform fees seems brave, pioneering and, not least, really expensive. If a platform costs each client 0.30% on average a year - as AFH itself has said - and the average advice fee is, say 1%, then by taking on clients' platform fees as a business the adviser firm is looking at sacrificing around one-fifth of its revenue. For a public company such as AFH, this would surely be unthinkable. Imagine shareholder reaction if a business voluntarily took a 20% hit on revenues. Luckily for AFH and it...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
