Low-cost passive investing has grown in popularity in the United Kingdom since the Retail Distribution Review in 2013 banned financial advisors from accepting commissions from fund companies. But Alex Riley was on board the indexing bandwagon years before then.
Riley, director at Bunker Riley Financial Planning in London, says he saw the move against commissions coming and first dabbled in charging some clients direct fees in 2006. This gave him the ability to use inexpensive passive funds. While these fees were only a small part of the firm’s revenues, it put him well ahead of the curve in the U.K. “The writing was on the wall for many years [before 2013],” he says.