Conflicts of interest is the theme of this week’s IFA feature.
The complicated relationship among dealer groups, platforms and advisers is explained by industry commentator Ian Knox, from Paragem Partners, who believes that if it wasn’t for the opaque nature of platform fees, dealer groups and advice as we know them couldn’t exist.
It’s an interesting hypothesis and one which I believe to be absolutely true, however, whether or not it is actually affecting the quality of advice for the public is questionable.
On one hand, the way advice is often paid for through platform rebates means more people are seeking and receiving advice. On the other hand, whether it is appropriate and could be better provided are questions that at this time are difficult to answer.
On another issue, I have lately been struck by media liaison people whose job it is to thwart journalists in their attempts to obtain information.
Some, and not just from small houses, have been surprised when they choose not to talk to us that we still publish stories that include information about them.
Especially today, with the proliferation of information easily available from websites, it’s incredible people still believe you can keep a lid on information getting out.
If we call a fund manager saying we’ve heard that one of their analysts has left, chances are it’s not just us that’s heard. By the time the information has reached us it’s hit a few others.
To imagine that by not giving further information that they’re keeping it quiet is naïve at best.
There are better ways of minimising the potential damage the information can cause. Talking to us may be one of them.
