Advisers failing investors on fund costs - Defaqto

Laura Miller
clock

Three quarters of advisers are using the wrong measures to compare fund costs, giving clients an inaccurate picture of the charges eating into their returns, according to research by Defaqto.

Fund groups shared the blame, it said, for failing to be clear about all the fees they charge investors. As a result, advisers are underestimating the all inclusive total cost of investing which in reality can be up to 3% per year, even for clients with big portfolios that would usually benefit from lower fees, it said. The research again raised serious questions about what is good value for clients, less than four months after a damning report by the influential Financial Services Consumer Panel (FSCP) that called on the regulator to implement "radical, structural reform" of how fund...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Investment

Consultancy launches to provide IFAs with 'robust' investment processes

Consultancy launches to provide IFAs with 'robust' investment processes

Sheridan Admans launches Infundly

Isabel Baxter
clock 06 November 2025 • 1 min read
Inflation protection not front of mind for financial advisers

Inflation protection not front of mind for financial advisers

Titan Square Mile report suggests

Jen Frost
clock 04 November 2025 • 3 min read
Trick or treat? The UK and global economy face their Halloween ghosts

Trick or treat? The UK and global economy face their Halloween ghosts

‘Wealth managers and market professionals are tiptoeing past economic graveyards’

Stephen Jones
clock 31 October 2025 • 4 min read