how likely is it....

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MarcoM
MarcoM Posts: 798 Forumite
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in Savings & investments
That an IFA could run away with the client's money?

There was a case in my local paper of a bank manager who was taking money out of customers accounts. I was wondering if something similar could happen with an ifa considering that a client would only get a couple of updates a year on the funds invested.
I am about to look for an IFA and this issue worries me a little. Is there any precaution one can take should he be unlucky and end up with a dodgy IFA?

Thanks

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  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
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    i don't think you'd usually be writing a cheque to the IFA - more likely to a platform which the IFA recommends. the platform would probably be a big, well-established company (even if not as reassuringly profitable as HL :)).
  • Hominu
    Hominu Posts: 1,671 Forumite
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    I'd expect you to be paying the IFA only for his advice, not giving him a big fat cheque and saying "Invest this for me and take your cut".
  • jimjames
    jimjames Posts: 17,621 Forumite
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    edited 18 April 2014 at 10:56AM
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    In theory it is possible but in the scale of the number of transactions per year I'd think it was tiny.

    There are always ways for fraud to happen and even if you make the cheque to find manager it could be misused but in reality there are far better things to worry about. If this is a concern then why not read up to do your own investment then you won't be reliant on someone else and taking that risk.
    Remember the saying: if it looks too good to be true it almost certainly is.
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