Are percentage-of-assets charging models open to bias?

Now the financial services regulator is confident it has eradicated product or provider bias following the Retail Distribution Review (RDR), it appears to be turning its attention toward ‘dealing' bias. Last week, Financial Conduct Authority (FCA) chief Martin Wheatley suggested advisers who charge predominantly on a percentage-of-invested-assets basis would spike the regulator's interest. This is not because the FCA believes that particular charging model is inherently flawed - after all, it has always been the most efficient option for, and favoured option of, many clients - but tha...