Fee disclosure myths busted

Fee disclosure myths busted - fee disclosure — Fee disclosure myths busted

Fee disclosure on websites often faces resistance from financial advisers who fear clients will bargain for lower rates. According to Phil Bray, this is the biggest objection when recommending that advisers publish their fees online.

The fear of price negotiations

Bray notes that advisers frequently express concern that publishing fees will attract “tyre-kickers” looking to negotiate. The logic behind this objection is understandable. If clients can easily compare prices, they might demand a discount. This dynamic creates a nervousness among professionals who rely on fees for revenue. They worry that transparency will lead to a race to the bottom, where price becomes the deciding factor for clients. The fear is that once the price is visible, the value of the advice becomes secondary to the cost.

Context for the Channel Islands

High-net-worth UK families are increasingly eyeing the Channel Islands as a “near-shore, offshore” base following the abolition of non-domiciled status. The data from wealth manager Rathbones reveals a notable drop in the number of non-domiciled and deemed-domiciled taxpayers. Figures show these taxpayers fell to 81,900 in the 2024/26 tax year.

Where the money goes

Inheritance tax liabilities reached £7.03bn in 2023/24, with London and the South East accounting for a significant portion of the total. Analysis by private wealth and family law firm TWM Solicitors indicates that families in these regions paid 46% of all UK inheritance tax bills. This concentration of wealth and tax liability highlights the importance of estate planning in the capital and the surrounding areas. The top-paying parliamentary constituencies for IHT are in London, the South East, or within commutable distance, led by Kensington (£107m) and Cities of London and Westminster (£97m). These areas see millions of pounds in IHT paid annually, driven by high property values and complex family structures.

Estates worth more than £1m in 2023/24 totalled 38,403, up from 9,070 in 2022/23. This growth reflects the increasing value of property and assets held by the wealthy. The rise in high-value estates means that more families are exposed to inheritance tax, prompting a need for proactive planning. Clare Moffat, pensions and tax expert at Royal London, points out that today marks the 250-day countdown to one of the biggest estate planning changes in recent years. Pension death benefits are set to come within the scope of inheritance tax from April 2027, a change that will impact many families who have not yet adjusted their strategies.

AI in professional development

The Openwork Partnership has launched Thrive, an AI-powered learning platform designed to streamline continuous professional development for financial advisers. Delivered through The Openwork Business School, the mobile-first platform features an artificial intelligence learning assistant named Obi. Obi delivers personalised CPD recommendations and targeted learning pathways aligned with an adviser’s specific license, speciality and career stage. This technology addresses adviser time constraints, enabling professional growth seamlessly within daily workflows.

Content is mapped directly to the Financial Services Skills Commission’s Future Skills Framework, targeting key areas such as digital literacy, behavioural coaching, and adaptability. Ed Bailey, principal of The Openwork Business School, noted that the launch addresses adviser time constraints. The goal is to integrate learning into the daily routine, allowing advisers to upskill without taking time away from client work. This approach reflects a broader trend in professional services where technology is used to enhance efficiency and knowledge retention.

Bank of England holds rates

The Bank of England has kept interest rates at 3.75% for the fifth time in a row. Policymakers weighed easing inflation against the risk of renewed price pressures from higher energy costs. The Monetary Policy Committee voted six to three to hold Bank Rate, with three members preferring a 0.25 percentage point increase to 4%. The split was more hawkish than June’s seven-to-two vote, when two members supported a rise. This decision signals a cautious approach to monetary policy as the central bank handles complex economic conditions.

The latest inflation figures show that the annual rate is 2.2%, down from 2.3% the previous month. This reduction gives the Monetary Policy Committee more room to act if the economy slows. Analysts predict the central bank may cut rates later this year as the economic outlook stabilises.