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On 1st April 2010 12:02 AM a seemingly April fool’s joke was mass emailed out from one of the most popular online retail unit trust distributor. But it is already 2 April at this point of writing and it appeared it is no April’s fool joke. It appears to be real. We now witnessed the Commoditization Trap in ACTION.
This unit trust platform provider is imposing a new platform fee ranging from 0.2% pa to 0.5% pa on unit trusts invested through them. This is unheard off in Singapore because normally such additional fees are only imposed by financial advisers – known as “wrap fee” – for the purpose of providing on-going advice (although this is often not the case but that’s another story altogether). The new platform fee is in response to increasing operational cost such as increasing regulatory compliance and decease margins due to decreasing upfront fees. Read more...[caption id="attachment_3975" align="alignright" width="150" caption="Photo by seier"][/caption]
On 1st April 2010 12:02 AM a seemingly April fool’s joke was mass emailed out from one of the most popular online retail unit trust distributor. But it is already 2 April at this point of writing and it appeared it is no April’s fool joke. It appears to be real. We now witnessed the Commoditization Trap in ACTION.
This unit trust platform provider is imposing a new platform fee ranging from 0.2% pa to 0.5% pa on unit trusts invested through them. This is unheard off in Singapore because normally such additional fees are only imposed by financial advisers – known as “wrap fee” – for the purpose of providing on-going advice (although this is often not the case but that’s another story altogether). The new platform fee is in response to increasing operational cost such as increasing regulatory compliance and decease margins due to decreasing upfront fees. Read more...
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On 1st April 2010 12:02 AM a seemingly April fool’s joke was mass emailed out from one of the most popular online retail unit trust distributor. But it is already 2 April at this point of writing and it appeared it is no April’s fool joke. It appears to be real. We now witnessed the Commoditization Trap in ACTION.
This unit trust platform provider is imposing a new platform fee ranging from 0.2% pa to 0.5% pa on unit trusts invested through them. This is unheard off in Singapore because normally such additional fees are only imposed by financial advisers – known as “wrap fee” – for the purpose of providing on-going advice (although this is often not the case but that’s another story altogether). The new platform fee is in response to increasing operational cost such as increasing regulatory compliance and decease margins due to decreasing upfront fees. Read more...
