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Wealth Professional | 01 May 2015, 08:30 AM Agree 0
If the CFA gets its way, advisors will have to prove to clients they’re on the same fee schedule as other clients of a similar size.
  • Tim Affolter | 01 May 2015, 10:41 AM Agree 0
    I'm not sure that any business should be required to research and report what its competitors costs are to clients or customers. Who's to say that the products are similar enough to command an identical cost structure? Each company strives to have its points of differentiation, its unique value proposition. The CFA is going to have to reference (and possibly provide) some kind of objective, generic benchmark for this purpose (i.e.: the average management fee of a similarly asset-weighted pension pool or mutual fund in Canada) before this requirement makes sense.

    How can one business be expected to identify, evaluate and articulate the value proposition of every other competitor in its field? Isn't "shopping around," and deciding what we like or don't like in a product, our responsibility as consumers? Also, shouldn't the nuances of a company's products and services be obtained from the horse's mouth? To ask a competitor to objectively compare its product to yours, and inform prospective customers of its findings, is WAY outside the normal operation of the marketplace, imho.
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