Research conducted by Saxo Bank has revealed that 41% of UK investors have no clear understanding of the fees they are paying for wealth management.
Although the majority of investors told the bank that cost is the most important factor when managing their money, nearly half are unclear as to what they are getting when it comes to paying for advice.
Karsten Henriksen, head of Saxo Bank’s Modern Wealth Management platform in the UK, says: “The confusion regarding costs and fees needs to be overcome with transparency to encourage investors to become more self‐directed.
“Addressing these issues is the next step in the marketplace which is in need of simplicity, transparency and relevant information.”
Good advice is the second most important factor for investors, followed by transparency, according to the results of the survey.
The survey was conducted by research firm Populus in March 2012 amongst 514 UK retail investors.