Martin Straub, founder of Envisage Wealth Management Services and speaker at this year’s annual conference, recently made headlines with his warning about service fees charged to clients who look to avoid taxes by placing their assets in insurance wrappers.
Reuters reports that Mr. Straub has found that less sophisticated investors can run afoul of unexpected fees charged by brokers and asset managers that eliminate any potential benefits:
“Unfortunately, as soon as you say ‘tax savings’, ‘tax optimization’, or ‘you can save this much tax’, many clients turn deaf and blind,” Straub said in an interview.
In the article, Mr. Straub goes on to warn that Swiss financial regulator FINMA may take action to curb the abuse of service fees on insurance wrappers.
“FINMA is clearly signaling more transparency is going to be demanded, both of the insurance company and of the asset manager,” Straub said. “More regulation is on the way.”
Annual conference attendees will be able to learn more about disclosed, undisclosed, and hidden costs to investors at Mr. Straub’s session, The Impact of Retrocessions, Cost Drivers, and Hidden Payments on Total Returns to Unit-Linked Life Insurance and Other Products.