PA360: Driving down cost does not demonstrate value

Proper alignment of tax wrappers lauded as an example of value

Jenna Brown
clock • 2 min read

Driving cost down to the lowest possible figure does not represent value to clients and advisers must determine what else they bring to the relationship to demonstrate compliance with Consumer Duty, delegates heard.

Speaking at PA360 in London on Wednesday (27 April), M&G Wealth investment business development manager Paul Fidell said the mindset that driving down cost to the lowest possible figure was "somehow delivering value" was wrong. He said: "What actually is value? People still think value is price. If I can drive the cost down to the lowest possible figure somehow that is delivering value - but is it? "I've done plenty of analysis where I have looked at MA portfolio sector averages and there is zero correlation between return and cost price. Statistically, it is known as ‘not significant...

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 Tax planning

IHT on pensions: Why the compliance challenge is bigger than the tax change

IHT on pensions: Why the compliance challenge is bigger than the tax change

Advisers are revisiting long-held assumptions

Lauren Kiley
clock 08 July 2026 • 4 min read
OBR forecasts rise in IHT and CGT take as ageing population increases

OBR forecasts rise in IHT and CGT take as ageing population increases

Expected to increase from 1.4% to 2.2% of GDP

Isabel Baxter
clock 08 July 2026 • 2 min read
Business Relief after April 2026: Why advisers are reassessing AIM

Business Relief after April 2026: Why advisers are reassessing AIM

'This does not signal the end of AIM within estate planning'

Nick Jones
clock 06 July 2026 • 5 min read