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  • FIRST POST
    • Savvy amateur
    • By Savvy amateur 20th Apr 17, 7:54 PM
    • 76Posts
    • 5Thanks
    Savvy amateur
    My IFA is going with SJP. should I be concerned ?
    • #1
    • 20th Apr 17, 7:54 PM
    My IFA is going with SJP. should I be concerned ? 20th Apr 17 at 7:54 PM
    My current IFA has just visited for the annual review of my husbands pension and ISA. We paid him fee to invest my husband's pension when he retired 3 years ago and an annual fee to maintain it. We also invested in an ISA with him 2 yrs ago. We have been happy with his advise and the performance of both items. He has now gone into great detail telling us why he is now going to be an FA with St James's Place. He said he stands by our current investments and we can leave them where they are if we prefer. It seems he can still manage them, but SJP will split the ongoing fee with him. It won't cost us any more, but he will get less. He explained he will only be able to recommend their products in the future, but said they have high performing products to choose from. He appears to be above board but after googling SJP I am a little concerned. What do you think ?
    1 Will he have less incentive to do the upkeep if SJP take a cut of his fee ?
    2 We have already paid him a Joining fee as a IFA (Not cheap)
    3 He is doing some research to see if SJP have comparably performing products we could move to (free of charges ).
    Any advise most welcome. We are moderately cautious investors.
Page 1
    • dunstonh
    • By dunstonh 20th Apr 17, 8:41 PM
    • 89,513 Posts
    • 55,951 Thanks
    dunstonh
    • #2
    • 20th Apr 17, 8:41 PM
    • #2
    • 20th Apr 17, 8:41 PM
    My IFA is going with SJP. should I be concerned ?
    yes. It means they are going from whole of market with low cost options available and quality options and everything in between to one of the most expensive distribution tied channels going.

    1 Will he have less incentive to do the upkeep if SJP take a cut of his fee ?
    Your charges will almost certainly be higher. His remuneration will almost certainly be higher. An adviser doesnt join SJP to earn less.

    2 We have already paid him a Joining fee as a IFA (Not cheap)
    if you think he wasnt cheap as an IFA just you wait to you see SJP charges.

    Any advise most welcome. We are moderately cautious investors.
    General rule of thumb is to either use an IFA or DIY. Not used tied sales reps from the likes of SJP.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Savvy amateur
    • By Savvy amateur 20th Apr 17, 8:52 PM
    • 76 Posts
    • 5 Thanks
    Savvy amateur
    • #3
    • 20th Apr 17, 8:52 PM
    • #3
    • 20th Apr 17, 8:52 PM
    Thank you. We are not experts in this area by any means but as we have only relatively recently paid out to invest in the current products and would have to pay a new IFA to move them, should we just keep them where they are and let him continue to manage them where he splits the fee with SJP (He said our fee would not increase ) and hope he is motivated to do a decent job, or can another IFA take over managing them but without the intro fee ?
    • Fatbritabroad
    • By Fatbritabroad 20th Apr 17, 9:05 PM
    • 178 Posts
    • 74 Thanks
    Fatbritabroad
    • #4
    • 20th Apr 17, 9:05 PM
    • #4
    • 20th Apr 17, 9:05 PM
    Your fee may not increase but don't sjp have other charges on the funds themselves that they get a cut of? Not an expert here but I would say don't get blind sided by the fee you need to look at the overall costs
    • dunstonh
    • By dunstonh 20th Apr 17, 9:08 PM
    • 89,513 Posts
    • 55,951 Thanks
    dunstonh
    • #5
    • 20th Apr 17, 9:08 PM
    • #5
    • 20th Apr 17, 9:08 PM
    We are not experts in this area by any means but as we have only relatively recently paid out to invest in the current products and would have to pay a new IFA to move them,
    No you wouldnt. You can appoint a new IFA to take on the ongoing servicing. No initial charges needed. No changes required.

    hould we just keep them where they are and let him continue to manage them where he splits the fee with SJP (He said our fee would not increase )
    SJP do have a company that can take on agencies. So, he can do that. However, he cannot make any recommendations to make any changes unless it is to SJP funds.

    So, his option is leave it where it is or change it to SJP.

    r can another IFA take over managing them but without the intro fee ?
    Many will as modern investments can allow this easily (unlike SJP which is rather old fashioned)
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Savvy amateur
    • By Savvy amateur 20th Apr 17, 9:09 PM
    • 76 Posts
    • 5 Thanks
    Savvy amateur
    • #6
    • 20th Apr 17, 9:09 PM
    • #6
    • 20th Apr 17, 9:09 PM
    Thank you. I need to ask the right questions. Hope I can do that.
    • Savvy amateur
    • By Savvy amateur 20th Apr 17, 9:12 PM
    • 76 Posts
    • 5 Thanks
    Savvy amateur
    • #7
    • 20th Apr 17, 9:12 PM
    • #7
    • 20th Apr 17, 9:12 PM
    Thank you Dunstonh. I guess I will look for a new IFA then. ☺
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