Fees across the whole value chain of advice could amount to as little as 1.2% in five years' time, predicts Nucleus chief executive and founder David Ferguson.
He and his colleagues at Nucleus have a working hypothesis that end-clients are currently charged an average of 1.8% across the full value chain but he expects this to drop by around a third in the coming years.
Ferguson is the latest Adviser Champion to appear in Professional Adviser's new series of videos, following our interviews with PA's current Adviser Personality of the Year Vito Faircloth, Panacea Adviser's Derek Bradley and SIFA's Ian Muirhead.
Ferguson goes on to suggest it is good the financial services sector is focusing more on client outcomes, arguing this is the most appropriate way to view risk. "I like to think this industry is becoming more outcome-led about what we're trying to achieve for the customer," he says.
"Risk should be measured as the likelihood of not achieving the client's personal outcome - not what we have at the moment, which tends to be one-dimensional volatility in the investment sense."
You can find out more of Ferguson's thoughts on different aspects of the world of financial advice - including why he would choose Skye from the children's cartoon Paw Patrol as his Adviser Champion from fiction or history - by clicking on the video at the top of the page.
Professional Adviser's Adviser Champions series of video interviews offers insight into how figures from inside and around the world of financial advice see such issues as recruiting new talent to the sector, the impact of regulation, the dangers of jargon and the challenges posed and opportunities offered by robo-advice.
To see the full set of Adviser Champions interviews to date, please click here
If you would like to put your own or a colleague's name forward for consideration to take part in the series, please do email Julian Marr
The chairman aims to shore up morale
UK economic headwinds are building
Three step reporting process
SJP academy hired 35 grads in May
Three advisers have their say…