Advice on IFA charging fee

supermonkey

Hi all,

When we bought our house some years ago a friend of ours offered to help with the financial products as he's an IFA. I asked him by email if he charged fees but it was amongst a load of other questions and he didnt answer direct. i assumed this meant no but later he asked for a sum. To keep the peace i paid it.

He as not left his company and has set up his own business. I've got a form through to sign to say we will use him for our various financial needs.

I don't really see why he should need such a form...if we ask him to sort our remortgage and have to sign something fine, but it isn't up for a while yet. And I'm not sure if he will still be charging fees which I certainly won't be paying this time.

Any ideas?

feisty1

supermonkey: friend or no friend it is ok to charge a fee as long as u make the person aware of this, so when he went thru the quote (KFI) with u for yr purchase, he should have made u aware of the fee he was charging as it would have to have been documented.

The form u have rcvd now, is to "service" you as a client, as you are "his" client and not a client of his previous company, no fees will be incurred for this.

This is normal practice, but I have to say, communication doesn't seem his strongest point. An email updating you & explaining you would be rcvg this form might have been a bit more courteous AND when he's remortgaging you next time, ask him direct if a fee will be incurred, then the choice is down to you.

grogdog

supermonkey wrote: »

Hi all,

When we bought our house some years ago a friend of ours offered to help with the financial products as he's an IFA. I asked him by email if he charged fees but it was amongst a load of other questions and he didnt answer direct. i assumed this meant no but later he asked for a sum. To keep the peace i paid it.

He as not left his company and has set up his own business. I've got a form through to sign to say we will use him for our various financial needs.

I don't really see why he should need such a form...if we ask him to sort our remortgage and have to sign something fine, but it isn't up for a while yet. And I'm not sure if he will still be charging fees which I certainly won't be paying this time.

Any ideas?

What a nice friend you are not wanting your mate to make a living;)

Joe_Bloggs

Do not sign forms that you do not understand. There are people who have seen this all before and are used to this kind of material. Consider consulting the Citizens Advice Bureau if you have doubts as to the meaning of the documentation that you are asked to sign.
J_B.

grogdog

Joe_Bloggs wrote: »

Do not sign forms that you do not understand. There are people who have seen this all before and are used to this kind of material. Consider consulting the Citizens Advice Bureau if you have doubts as to the meaning of the documentation that you are asked to sign.
J_B.

why not just ask the advisor if there is something you are not sure about, nowadays everthing is documented in the kfi so it should be easily understood, dont think you should be running to the cab for things like this, remember advisers nowadays are fully qualified and regulated and compliance plays a major role in documentation given out and recorded.

Joe_Bloggs

Perhaps the problem lies in that not everyone can take in the implications of the KFI as they did not have to take exams in the understanding of complex financial issues.
J_B.

grogdog

a kfi is a simple and document laid out in plain english and not exams are needed to understand it, everything is laid out in bullet points ie fees cost of mortgage, what it will cost is rates rise by 1%, if people dont understand this they probably shouldnt have a mortgage in the first place.

i am positve that the legal document that people need to sign with the solicitor are alot more complicated when applying for a mortgage. if everyone did as you suggest nothing would ever get done.

Joe_Bloggs

If you have doubts about what you are signing, you signature to, then you should seek advice. CAB is my view of the the first refuge.
J_B.

feisty1

Joe_Bloggs wrote: »

Perhaps the problem lies in that not everyone can take in the implications of the KFI as they did not have to take exams in the understanding of complex financial issues.J_B.

Their is nothing complex abot being told "and my fee for arranging yr mortgage will be £xxx.xx People understand when any other person quotes them for work.

Maybe I have missed a point, ah!could it be we are expected to work for free?

grogdog

damn i thought we were a charity and worked on a voluntary basis!! , can we actually earn money for advice and arranging mortgages that means people dont have the hassle of taking time of work to talk to individual complanies? i knew i was doing something wrong.

Joe_Bloggs

You might try selling insurance if the mortgage area does not meet your desired revenue stream. Too many people in the UK do not understand financial matters or legal matters. This is because these areas are not taught widely in schools.
J_B.