RESHAPING RETAIL FUND DISTRIBUTION

ASYMMETRY OF INFORMATION HAS DECREASE PRICING TRANSPARENCY HAS INCREASED

ASYMMETRY OF INFORMATION HAS DECREASED, PRICING TRANSPARENCY HAS INCREASED

FIGURE 5

“Retail investors are now enabled to understand what they buy together with valuing the cost of advice and other investment vehicles.”

Aaron Gubin, director of research at SigFig

"The changes have promoted greater transparency across the industry and provided greater visibility of fees to customers, creating a level playing field. Any perception of conflict or act- ing in self-interest is nowmitigated.” Les Vance, Chief Risk Officer at BT Financial Group

“The new transparency rules included in RDR will better equip investors to understand the products they are buy- ing, particularly with regards to their complexity and the price they pay for advice. Thiswill bringa standardisation to the level of advice fees in the local market. In fact, many local providers are already cleaning their products of advice fees - this became the winning product formula even before the imple- mentation of RDR.”

Richard Carter, head of product develop- ment at Allan Gray

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