A new survey has found that one of the main reasons why independent financial advisers (IFAs) may not recommend a trust is a lack of knowledge.
According to the research by JP Morgan Asset Management, 40 per cent of IFAs cited this as their main reason, while 37 per cent said it was as a result of the lack of availability on platforms.
Furthermore, 33 per cent said they would not recommend an investment fund sometimes because of the lack of commission or trail fees.
Jasper Berens, head of UK Retail Sales at JP Morgan Asset Management, explained why the result of the survey is so relevant at the moment.
He said: "The Retail Distribution Review (RDR) specifically states that come 2012, financial advisers wishing to remain independent will need to demonstrate a whole-of-market knowledge.
"Also, with the introduction of fee-based advice across the board from 2012, IFAs will no longer have to avoid investment trusts on a commission-based remuneration basis."
The RDR is also expected to outline the qualifications that independent financial advisers need to carry out their job.
More knowledge of investment funds needed
More knowledge of investment funds needed
Thu, 15 Jul 2010
Recommended links
Online shares and investmentsBook an investments review
Introduction to investment trusts
Find an independent financial adviser
JP Morgan products and services
Investment bonds guide
Introduction to buying preference shares
Investors told to expect no change in interest rates
Latin America investment advice
Investment fund recognised for diversification
New investment trust welcomed by industry
| Stocks & Shares news |
|---|
| Investors happy to make own decisions but lack SIPP knowledge, survey finds - Tue, 05 Apr 2011 |
| Investors put off switching Isas by low rates and fear of mistakes - Thu, 31 Mar 2011 |
| Investors shunning banks when taking out an Isa - Tue, 22 Mar 2011 |
| More News |
