Welcome!

News Feed Item

True and Fair Campaign Report 'Legalised Looting' Calls for OFT Investigation of Retail Investment Industry

LONDON, March 26, 2014 /PRNewswire/ --



  • New report finds UK investors are being cheated on a like-for-like basis compared to US investors by paying 58% more on their investments
  • 1/3 of investors are unaware of the fees they are being charged by fund managers
  • Post RDR, unbundling of fees has resulted in overall charges increasing by 28%
  • Campaign claims annuity shakeup is only a partial fix without total cost transparency

UK investors are paying 58% more for investments on a like-for-like basis, than those in the US, according to the True and Fair Campaign. The findings[1], published in a new report entitled Legalised  Looting to mark the second anniversary of the True and Fair Campaign (http://www.trueandfaircampaign.com), also reveals that US investors benefit from economies of scale that are passed on to them, receiving a discount of 33% on charges when investing in the largest funds, compared to just 6% in the UK.  Furthermore, a lack of competition and cartel-like pricing costs UK investors £1.14 billion more per annum compared to US investors.

The report provides a quantum of evidence that reads as a damning dossier of anti-consumerism which provides clear and compelling evidence that the UK investment industry is operating against the public interest, and as such warrants a full OFT investigation.    

After the Chancellor's radical shake up of the annuities and ISA markets, millions of UK investors will be weighing up the options of new savings and wider investment choices for their hard earned money. Whilst this increased choice is a positive step for savers, these new measures completely ignore the endemic crisis of fee transparency that is crippling the returns of pension and investment products, according to the True and Fair Campaign.    

Gina Miller who spearheads the True and Fair Campaign and is a founder of SCM Private said, "After reading this report, savers should be up in arms and demand to know why successive governments and regulators have allowed these scurrilous practices to continue.  For over 10 years US investors have had a much fairer deal, and benefitted from an investment industry with higher standards and ethics.  The US

regulator and politicians have ensured their investors benefit from much greater transparency, a more competitive industry, less conflicts of interest and considerably lower charges.  The question is why have the UK regulator and politicians been dragging their feet for so long?

"The Budget illustrates that the Government has finally woken up to the scandalous treatment of pensioners in respect of annuities.  However the annuity pensions' shakeup is only a partial fix.  If pensioners choose an investment fund rather than an annuity, they can still be ripped off as they will not know the true total cost.  Instead they will be jumping out of the frying pan into the fire. 

"Without fundamental change across all pension and investment products in terms of total cost and fee transparency, millions of people will end up simply being fleeced by another part of the investment industry, and possibly the insurance industry who are bound to develop new products with incomprehensible charging structures." 

"Instead of just lancing the boil, there needs to be practical but fundamental changes in terms of transparency of cost and holdings to ensure the anti-consumerism operating across the pensions and investment industries is surgically removed."

Highlights  from  the  report,  'Legalised  Looting'  include: 

  • In UK retail funds alone, double charging and 'cartel-like' pricing together costs savers £2.6 billion pa
  • UK investors are paying 58% more than US investors
  • Post RDR - unbundling of fees has resulted in overall charges increasing by 28%  
  • Layers of charges likely to erode over ½ overall returns after inflation
  • 29% of UK investors don't know their charges
  • 45% don't know their overall returns
  • 73% of UK investors are demanding to see just ONE cost number and more than a quarter would save more if UK industry provided this
  • Worryingly, 26% of UK consumers do not intend to invest anything in 2014

Gina  Miller  continues, "The UK investment industry operates an Alice in Wonderland existence where nothing is as it seems.  Even senior investment insiders admit they cannot understand what the costs are.  In a stock market likely to continue producing single digit returns, there is no place for complacency, lengthy consultations and passing the buck. The Government needs to intervene and encourage a full OFT investigation."

http://www.scmprivate.com

http://www.trueandfaircampaign.com

Notes  to  editors:

  1. Based on an independent online survey conducted by Research Plus Ltd on behalf of SCM Private for the True and Fair Campaign.  A total of 2,046 UK adults aged 18 and over, were surveyed between 31st January - 5th February 2014.


More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
As more and more companies are making the shift from on-premises to public cloud, the standard approach to DevOps is evolving. From encryption, compliance and regulations like GDPR, security in the cloud has become a hot topic. Many DevOps-focused companies have hired dedicated staff to fulfill these requirements, often creating further siloes, complexity and cost. This session aims to highlight existing DevOps cultural approaches, tooling and how security can be wrapped in every facet of the bu...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
Docker containers have brought great opportunities to shorten the deployment process through continuous integration and the delivery of applications and microservices. This applies equally to enterprise data centers as well as the cloud. In his session at 20th Cloud Expo, Jari Kolehmainen, founder and CTO of Kontena, discussed solutions and benefits of a deeply integrated deployment pipeline using technologies such as container management platforms, Docker containers, and the drone.io Cl tool. H...
In his session at @ThingsExpo, Dr. Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, presented the findings of a series of six detailed case studies of how large corporations are implementing IoT. The session explored how IoT has improved their economic performance, had major impacts on business models and resulted in impressive ROIs. The companies covered span manufacturing and services firms. He also explored servicification, how manufacturing firms shift from se...
Connecting to major cloud service providers is becoming central to doing business. But your cloud provider’s performance is only as good as your connectivity solution. Massive Networks will place you in the driver's seat by exposing how you can extend your LAN from any location to include any cloud platform through an advanced high-performance connection that is secure and dedicated to your business-critical data. In his session at 21st Cloud Expo, Paul Mako, CEO & CIO of Massive Networks, wil...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.