Robo advisor Scalable Capital gives thumbs up to FCA report

The digital wealth management firm said the regulator’s fee transparency proposal is good for the industry.

The digital wealth management firm said the regulator’s fee transparency proposal is good for the industry.  

One of the fastest growing digital wealth management firms has given its support to the findings of the Financial Conduct Authority’s landmark investigation into the asset management industry.

The report found that price competition was not working effectively and fees had no impact on returns. The FCA has made a number of recommendations, including a single all-in fee and requiring two independent members to the board.

“A single all-in fee really would be revolutionary for the asset management industry,” wrote Scalable Capital co-founder and CEO Adam French.

Robo advisors stand to benefit the most from the FCA’s findings, as they tend to charge much less than traditional wealth managers. Most of the platforms already disclose their fees on their websites.

IG Group, which created its own robo advice platform in April, is also in support of the FCA’s call for transparency.

The FCA findings are based on “sincere feedback” and the proposed changes will be in the best interests of consumers, French wrote.

“The best interests of the customers are at the centre of every proposal and although the changes will take time to implement, ultimately, they will give the consumer a much more transparent view of the asset management industry,” he said.

This article first appeared on www.roboadvicenews.com.