Posted inIndustry views

What does the industry think? 24 October

FSA has managed to find a bold group of industry thinkers who are unafraid to speak their minds on crucial industry topics. This week: Commission-based models.

Regulation is moving at such a fast pace that it is likely all financial services markets around the world will have banned commission-based investment advice in five years. Wealth managers will no longer get clawbacks and fund providers will drop fees across their fund ranges.







“If management fees are reduced, the asset management industry could face a situation in which the majority of active managers are unable to beat their benchmarks.”

Robert Ruderschmidt, portfolio manager, Overflowing Alpha Asset Management









“We will will proactively dialog with regulators, aiming for multi-year discussions that will keep commissions coming until I’m closer to retirement.”

Louie Zheng, head of discretionary mandates, Global Behemoth Private Bank






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Fanny Leung, corporate communications, Absolute Zero Risk Investment Management (AZRIM)









“Well, we had a good run.”

Tripp Hutchins, head of global distribution, Low Hanging Fruit Asset Management





“We are urging that the industry take immediate steps to create a new paradigm by re-labelling all mention of “fees” or “commission” to “cost”, which our research shows causes less grumbling.”

Pollyanna Sim, head of marketing in APAC, StraightTalk Fund Management Group



Part of the Mark Allen Group.