Best consumer platform award to Interactive Investor
Interactive Investor won the Best Consumer Platform Award at the Aberdeen UK Platform Awards on Tuesday, beating off competition from three other shortlisted brokers.
The prize was judged on categories including ease of navigation and use, range of investments available, cost, and clarity; and the judges described its "range of investment options and clear pricing structure as being ideal for a post-RDR world".
The Retail Distribution Review, or RDR, was brought in at the beginning of 2013 and changed the way in which financial advisers were paid. It banned commission on investment products in order to combat accusations of bias, and instead made it necessary for financial advisers and platforms to charge fees to their clients.
A shortlist of four brokers, including Alliance Trust Savings, Charles Stanley Direct and Hargreaves Lansdown as well as Moneywise's sister website Interactive Investor, was selected by judges with experience in the financial services industry, and then readers of website Your Money voted to choose the winner.
Chief executive Adam Seale believes that the platform's use of flat fees was a major reason for its appeal to consumers.
"Our move towards fully transparent pricing, a full range of both legacy and clean funds and fixed, not percentage-based, fees has set us apart from the majority of the industry," he said.
"The funds industry has been built on percentage-based pricing, where clients with larger portfolios pay more for the same level of service. Flat fees have become more mainstream for advisors, but are still very much in short supply for execution-only businesses."
The shortlist of contenders for the award, selected by judges Nigel Aston, Michelle Cracknell, Edward Glynn and Mark Polson, contained two brokers using the percentage-based fee model and two which had adopted a flat-fee structure.
"Interactive Investor is delighted that the industry has recognised the value for clients in choosing a winner with a flat fee model," commented Seale.
"The vast majority of UK consumers are still not aware that they could be much better off and this award is a significant step in the right direction towards redressing this imbalance."
This article was written for our sister website Interactive Investor
Describes the relationship between a client and a stockbroker or independent financial adviser whereby the broker or adviser acts solely on the client’s instructions and doesn’t offer any advice on which shares to invest in or financial products to buy and simply “executes” the wishes of the client, regardless if they are judged to be sound or wrong. Other types of broking service offered are advisory (whereby the client/investor makes the final decisions, but the broker offers advice) and discretionary (whereby the broker manages the portfolio entirely and makes all the decisions on behalf of the client).