In the week when Which? has called for financial advisers to publish a guide to their rates, rplan’s move makes public the charges that advisers and brokers take in investment commissions, bringing greater transparency to the market and helping put the investor more in control.
The move follows concerning research commissioned by rplan.co.uk, which revealed 30% of people thought they were paying no charges for their ISA, and of those that did think they are paying charges, 89% have no idea what those charges might be.
Most alarming, it was people on higher incomes and those closest to retirement, people that would have been paying charges for the longest, that were most likely to think they are paying no charges at all.
Further, rplan.co.uk found that many people don't realise that they pay commission both on their initial investment, and on an ongoing basis for the lifetime of the investment.
Andy Creak, Director at rplan.co.uk commented:
“At a time of year when ISA investors are having to be savvy to see their funds grow, it’s a concern that the vast majority remain unaware of the charges and commissions that are eating away at their fund values, like tooth decay.
"Our new commissions comparison tool is one of a number of steps we will be taking in the coming months to blow away the lack of transparency that has gone unchecked for too long and will make it simple and clear for investors to find out what charges and commissions they will pay over the term of a product.
"We hope others will follow suit so that this information can become universally available to everyone.”
