The model by which retail investors pay for investment advice is “crazy” but cannot be fixed from within the financial industry, according to a panellist at Sibos discussing the battle for funds distribution. Regulation will be required to alter the structure.

Responding to a question from the floor, Gavin Ralston, head of continental Europe and the Middle East for Schroders, conceded that the fee structure whereby an investor would pay 50 basis points to an independent financial adviser and 100 basis points to the fund manager was "hard to justify for the client".