US investment giant Vanguard gets permission to offer cut-price investment advice in the UK
US investment giant Vanguard is planning to pile pressure on wealth managers which have also come under fire over inflated fees
A US investment giant which specialises in offering cheap tracker funds has been given permission to offer investment advice in the UK.
As the industry faces intense criticism over fund charges, Vanguard is planning to pile pressure on wealth managers which have also come under fire over inflated fees.
The firm has secured approval from the Financial Conduct Authority to provide retail investment guidance, which will give it a platform to steer savers towards its own low-cost passive funds.
These blindly track financial markets rather than employing a fund manager to pick stocks, and are much cheaper as a result.
The company said its plans are still in the early stages.
But Sean Hagerty, head of Vanguard’s European business, said: ‘The provision of advice will never be one size fits all. ’