UK wealth managers are deliberately obscuring fees to make them harder for clients to understand, according to Charlotte Ransom, CEO of Netwealth. She argues the industry has failed to address complex and hidden charges over the past decade, deterring investment and preventing fair market comparisons. This criticism comes as the Financial Conduct Authority proposes new rules for clearer communication.

The Financial Conduct Authority's proposed changes aim to simplify how firms communicate investment costs, mandating "plain English" and banning practices like "double dipping" where firms profit from client deposits while charging fees. Despite previous regulations like the RDR in 2013, Ransom contends that fee transparency has not materially improved, leaving many investors in the dark about true costs.

Industry players like St. James's Place have recently altered their fee structures, and Rathbones has stopped charging fees on client cash balances. While individual components of portfolio costs are disclosed, meaningful comparison remains challenging, according to consultant Chris Bredin. Netwealth, for example, charges between 0.7-1.1% for combined investment management and advice.

The ongoing lack of transparency highlights a persistent issue where hidden costs can significantly erode investment returns over time. Activists like Gina Miller have long campaigned against this opacity, labeling it a "choice" rather than mere complexity. The FCA's proposed intervention signals a regulatory push to force greater clarity in the wealth management sector.