Advice on IFA charging fee

grogdog

Joe_Bloggs wrote: »

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.

oh dear we cant give advice on insurances either without the cab's approval,so the clients know all that is available to them and we should just ask what they want and not give them options as to what is available to them.

with every post you just talk more nonsense:rotfl: :rotfl: :rotfl: :rotfl:

feisty1

and then of course when it comes to them thinking they have a "claim" and they find out they don't because the policy they choose doesn't cover the claim, they head off to CAB or FSA shouting "mis-sold"......what other industry has so many "armchair specialists", day job whatever, night job "diy armchair financial adviser"!!

I rcvd a PM from someone yesterday on here, requesting advice on a matter that "a good friend" advised him on! Now his situation is tragic but where is that friend now? Certainly not around to get him out of trouble, if I had given the same type of advice, i would be struck off (and quite rightly) as it is going to result in financial ruin..........

Joe_Bloggs

@feisty1
You have done many creditable explanations of financial matters to anonymous posters in the past. I ask you to 'see' the bigger picture. We are in big problems if the language that we use is not understood. The motivation behind people posting on this forum has never been in question. I ask the question , why do you post here ?
J_B.

feisty1

JB:Quote: I ask the question , why do you post here ?

What prompts you to ask such a question?

Joe_Bloggs

My answering before you may appear to have influenced your answer but I will answer.

feisty1

Jb Why??????

dunstonh

I don't really see why he should need such a form

It sounds like an agency transfer. At the moment, all the financial products bought through the old company have them as servicing agents. He is asking you to sign a letter of authority to transfer servicing rights from the old company to his company.

A very common request. Any IFA taking on new clients would do the same as it allows us to find out policy details etc with that provider. Without it he cannot obtain policy details and that can hamper the advice given in future.

By 2012, commission options wont exist any more. It will all be fee based. Fee basis is often cheaper than commission anyway so its not a problem. However, fees will be for work done. If no work is due for a couple of years then you wont be charged.

Joe_Bloggs

Perhaps the agent has split with his original employer and is now poaching clients ?
J_B.

feisty1

Joe_Bloggs wrote: »

Perhaps the agent has split with his original employer and is now poaching clients ? J_B.

JB Why do you always look for an opportunity to be derisive towards an adviser? If you had taken the time to read this post correctly and/or if you understood the structure of the industry you would not have made such a remark. The OP clearly stated the adviser was a friend, therefore this made the OP a client of the adviser, who is quite within his/her rights to retain them when they move on. In fact the reason the LOA (letter of authority) has been issued is to stop "his original employer poaching his clients"!

What a dark world you must live in, when all you can perceive is people acting unethically/immorally.

dunstonh

Joe_Bloggs wrote: »

Perhaps the agent has split with his original employer and is now poaching clients ?
J_B.

The OP said the adviser has set up his own company so I take to mean he has split with the original employer.

As for poaching clients, only the OP can tell us if they see the adviser as their adviser or the original firm as their adviser. If its the original firm, then he is poaching. If its him, then he is just making sure the original firm no longer hold the authority to contact the OP and that he does.