National financial services group AFH claims it will be the first financial adviser in the UK to scrap platform fees for its clients.
AFH chief executive Alan Hudson told IFA Magazine that clients investing with AFH would in future not be charged platform fees.
He said: “Platforms are too expensive anyway, and as it’s mainly advisers who benefit from using them we don’t think it’s right that our clients pay for them.
“We believe that investment returns in the future will on average be lower than they have been historically. That means we have to look to reduce third-party costs wherever possible, so our clients can achieve sufficient net investment returns to meet their financial planning objectives.”
Hudson also believed other advisers would follow AFH’s lead.
He added: “For us, it wasn’t a question of whether but of when. This is a natural development of our strategy to make investment advice accessible and improve outcomes for our clients.”
