Platform charge disclosure regime 'misleads' clients - Skandia

In its response to the FSA’s platform discussion paper, Skandia says the current disclosure regime focuses on charges at the point of sale and does not cover the entire range of consumer charges – such as fund switches. It also says firms should not be permitted to refer to annual management charges without referencing the higher total expense ratio (TER) amount. Skandia says the lack of standardisation can confuse advisers and clients, especially as switch charges appear insignificant. Its figures show for a £100,000 portfolio, of which a third of the funds are being switched each year,...