Robo-advisers 'lack charging transparency' - report

'Marketing terminology' should be banned - Boring Money

Tom Ellis
clock • 2 min read

Robo-advisers use overcomplicated language and do not communicate the full cost of investing to consumers, a report from Boring Money has claimed.

The research, which involved 15 consumers assessing 15 online investment propositions in "deep-dive" interviews, found just one of the testers could calculate the cost of investing a £1,000 sum using a robo-advice service.  Commissioned by the Financial Services Consumer Panel, the study also found that, without exception, all of the robo-advice propositions assessed did not include underlying investment charges in their fees. Furthermore, said the study, few of the 'robo' websites had clearly visible links to charges and fees on their homepages.  "Providing all-in fee illustrations i...

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