Dymott's Digest: Why platforms and fixed fees do not match



Fidelity's Ed Dymott recalls Supermarket Sweep to make a pricing point...

Once in a while, a point is raised that looks to challenge the fundamentals of how an industry works. One such point is fixed price charging for platforms and fund managers. The question is based on a simple belief that these services are based on a fixed number of people and a lump of technology. Why not divide the total costs by the number of customers, add a (fine) margin and, hey presto, there's your cost? In theory, it makes sense, but it does not really work this way. Supermarket Sweep In a perfectly transparent and unbundled world, I have considered writing to my local superm...

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