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...

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