ISI members: the devil is in the detail
Good Returns spoke with a number of ISI members, including ING, AXA, Sovereign and Funds Administration New Zealand (FANZ), yesterday about the ISI's plan to phase out commissions.
ING head of funds management Paul Butler says while the company has no specific issue with the payment of commission as long as investors are fully aware of the terms, the fee-for-service model provides a clean distinction between the role and costs of a product provider and those of an adviser.
"It makes both parties accountable for the specific contribution they make to an investor's financial outcome."
Butler says ING is of the view that fee-for-service is the most likely long-term payment structure for professional advisers and therefore it supports, in principle, a voluntary fee-for-service model in the medium term.
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