IFA / Discretionary Fund Management - Thoughts/Advice
Options
gmgohara
Posts: 52 Forumite
Have been having meetings with a number of IFA's (looking to replace my current adviser who has given up)
Had a meeting recently with a local IFA who also offer Discretionary Fund Management themselves internally (they do it themselves and are one of a small number of IFA's who do this)
This was something that was interesting as it is tailored to me/my risk profile (rather than all clients being bundled under one profile etc)
Initial fee for advice/to transfer from existing wrap/provider is small and acceptable so that would not be an issue
Ongoing servicing fee for DFM service would be circa 1% + VAT. On top of that would be Wrap Platform charge and clean class fund AMC etc
Appreciate any thoughts on the above proposition and potential charges etc
For info, amount invested would be circa £125K (mixture of ISA and SIPP)
Thank you
Had a meeting recently with a local IFA who also offer Discretionary Fund Management themselves internally (they do it themselves and are one of a small number of IFA's who do this)
This was something that was interesting as it is tailored to me/my risk profile (rather than all clients being bundled under one profile etc)
Initial fee for advice/to transfer from existing wrap/provider is small and acceptable so that would not be an issue
Ongoing servicing fee for DFM service would be circa 1% + VAT. On top of that would be Wrap Platform charge and clean class fund AMC etc
Appreciate any thoughts on the above proposition and potential charges etc
For info, amount invested would be circa £125K (mixture of ISA and SIPP)
Thank you
0
Comments
-
Had a meeting recently with a local IFA who also offer Discretionary Fund Management themselves internally (they do it themselves and are one of a small number of IFA's who do this)
That concerns me. The FCA has had concerns on this basis as well as it could indicate they are not independent after all.This was something that was interesting as it is tailored to me/my risk profile (rather than all clients being bundled under one profile etc)
All investments should be tailored to you. The fact its DFM does not mean anything different. Indeed, given the recent FCA report, I would be more concerned if a DFM option is recommended as the FCA found that side was more likely to have a one size fits all portfolio.Ongoing servicing fee for DFM service would be circa 1% + VAT. On top of that would be Wrap Platform charge and clean class fund AMC etc
That is expensive. Possibly as your investment value is on the low side for a DFM.
I am not totally anti DFM. However, they are more suited and priced for larger portfolios. Do you actually need a DFM and paying twice (or more) the cost of an IFA service to get it? Are you sure the portfolio is bespoke and not a one-size-fits-all?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
This discussion has been closed.
Categories
- All Categories
- 343.6K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.9K Spending & Discounts
- 235.8K Work, Benefits & Business
- 608.8K Mortgages, Homes & Bills
- 173.3K Life & Family
- 248.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards