IFA Question - Expected Fees
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gmgohara
Posts: 52 Forumite
I currently have circa £125K invested via the Novia Wrap Platform (a combination of ISA / SIPP) with Discretionary Fund Management by London & Capital
My current IFA has ceased operating leaving my investment orphaned with Novia until I find a new IFA
What initial fees / ongoing fees can I expect when approaching a new IFA to review/take over the investments (am happy to transfer to a new platform etc if better suited)
Grateful for any advice
My current IFA has ceased operating leaving my investment orphaned with Novia until I find a new IFA
What initial fees / ongoing fees can I expect when approaching a new IFA to review/take over the investments (am happy to transfer to a new platform etc if better suited)
Grateful for any advice
0
Comments
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What initial fees / ongoing fees can I expect when approaching a new IFA to review/take over the investments (am happy to transfer to a new platform etc if better suited)
To be honest, a discretionary management service on £125k is a waste of money. Its difficult to put a price on 20,000 advisers but something in the region of £500-£1500 initial and 0.5% p.a.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks.
Would you expect an IFA to construct a new portfolio (i.e. select individual funds themselves) or would they be more likely to pick from a pre-populated collective of funds (to suit my risk profile) on the wrap platform ?0 -
Would you expect an IFA to construct a new portfolio (i.e. select individual funds themselves) or would they be more likely to pick from a pre-populated collective of funds (to suit my risk profile) on the wrap platform ?
Cant see them wanting to use a discretionary service (that is a minority option). They will want to build their own portfolio. IFAs have to offer from the market. If they dont then they are not allowed to call themselves IFAs. Although recently, it has become apparent that some restricted advisers are more independent than some IFAs.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Surely this depends on the client? DFMs on platforms can be offered at costs no higher than multi-manager funds, so if that solution was right for the client than this could be as well. London & Capital, in this case, seem to price their services at around 0.25% plus VAT, which won't necessarily be a waste of money, especially if the adviser then doesn't price their service to include full management of the assets. I have no idea how London and Capital construct their portfolios so I can't consider the total ongoing charges, but I equally can't dismiss them as a waste of money without knowing all of the other applicable costs.To be honest, a discretionary management service on £125k is a waste of money. Its difficult to put a price on 20,000 advisers but something in the region of £500-£1500 initial and 0.5% p.a.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0
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