David Ferguson on hidden charges: 'No-one adds up those little things at client level'

‘Enormous aggregational asymmetry’

Ayesha Venkataraman
clock • 3 min read

Many firms have hidden costs in their pricing models with rampant informational and aggregational asymmetry in the market, said David Ferguson, founder and former chief executive of adviser platform Nucleus, and the incoming CEO of Seccl.

Giving the keynote speech at the Lang Cat Live event on Thursday (10 February), Ferguson pointed to firms that had made more than half their profit on interest on cash in the recent past. "I always struggle with pricing models where a firm will say we charge X, that's our headline price, and we also charge this if you do drawdown, and this if you take an income payment with your statement, we take a margin on cash," he said. "No-one adds up those little things at the client level, because it doesn't matter, it's like £20, or only £50 there. But actually, the aggregation asymmetry is t...

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 Your profession

FCA urged to prioritise a 'common sense' approach

FCA urged to prioritise a 'common sense' approach

Last week’s PA Asks poll highlights industry’s thoughts on the FCA

Sahar Nazir
clock 25 March 2024 • 2 min read
Advisers overlooking younger clients over asset value bias

Advisers overlooking younger clients over asset value bias

'Young people need to have access to trusted advice'

Sahar Nazir
clock 22 March 2024 • 1 min read
Financial advice crucial as near-term challenges remain

Financial advice crucial as near-term challenges remain

'A good IFA has rarely been more valuable'

Ahmed Bawa
clock 22 March 2024 • 4 min read