As more people look to invest their money, it`s become increasingly important for financial institutions to be transparent about their fees and charges. One such institution is Alliance Trust Savings, which recently announced changes to its adviser charging agreement.
Alliance Trust Savings (ATS) is a UK-based investment platform that allows customers to invest in a variety of assets, from stocks and shares to exchange-traded funds (ETFs) and bonds. Like most investment platforms, ATS also offers the services of financial advisers to help customers make informed investment decisions.
However, to ensure fairness and transparency, ATS has updated its adviser charging agreement to align with the latest regulations introduced by the Financial Conduct Authority (FCA) in 2019. These regulations require all financial advisers to offer a clear, up-front breakdown of their fees and charges before providing any advice.
So, what do these changes mean for customers of ATS? Firstly, it`s worth noting that the fee structure itself has not changed. ATS advisers will still charge a percentage of the customer`s investment as their fee, with the percentage depending on the type of investment and the level of advice needed.
What has changed is how these fees are presented to customers. Under the previous system, ATS advisers would deduct their fees from the customer`s investment, which could lead to confusion about how much was actually being charged. Now, customers will receive a separate “Adviser Charge” document that clearly shows the percentage of the investment being charged, as well as any additional fees such as platform or transaction charges.
Furthermore, ATS has introduced a new level of transparency by providing customers with a breakdown of the adviser`s fee in pounds and pence. This means that customers can see exactly how much money is being charged for the advice they receive, helping them to make more informed decisions about their investments.
Overall, these changes to ATS`s adviser charging agreement are a positive step forward in terms of transparency and fairness for customers. By providing clearer information about their fees, ATS is helping to ensure that customers can make informed decisions about their investments, without any surprises down the line.