“We do include ETFs in our investment proposition but only for sophisticated investors with in excess of £500,000 to invest in a relevant vehicle. As our client base is predominantly not high net worth we have as yet not encountered a client who meets both criteria and for whom ETFs or ETCs are appropriate. Should this be the case then our view is that synthetic ETFs are unlikely to be suitable for the vast majority of retail investors given their complex structure and additional counterparty risk involved. We do perceive that when this marketplace becomes more mature it may be appropriate to lower the threshold for advice in this area both in terms of monetary amounts and the experience of the investor.”
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