Click here to close now.



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
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...