ETF News

Advisers urged to expand ETF knowledge

Independent financial advisers (IFAs) could significantly benefit from increasing their understanding of the "growing toolbox" of exchange traded funds (ETFs) available in the UK in light of proposed regulations requiring that they include the investment vehicles in "across the market" guidance to clients.

The recommendations have been put forward by the Financial Services Authority as part of its Retail Distribution Review (RDR), which was launched in June 2006 to ensure more customers get suitable financial products and advice.

The world's biggest provider of ETFs, iShares, said it "wholeheartedly welcomes" the RDR's proposal and intends to support advisers by launching a new package of education programmes to increase their knowledge of the funds.

Among the initiatives planned by the firm are dedicated ETF masterclasses, videos on understanding ETFs and investment categories and partnerships with third party organisations to enhance the quality of materials on ETF education.

Andrea Morresi, head of sales for iShares Europe, said ETFs have not sold in "any great volume" in the past because of a "lack of understanding" among many IFAs.

"However, they are a low cost and transparent way to invest in a particular market and are highly suitable for retail clients as witnessed by the uptake in the US retail market," he added.

News provided by Adfero in collaboration with BlackRock Advisors (UK) Limited (iShares). Please note that all copy belongs to (c)Adfero Ltd and does not reflect the views or opinions of BlackRock Advisors (UK) Limited (iShares) unless explicitly stated.