Fidelity fund choice and IFA commission

Reaper

I notice he is careful never to tout for business, but I'm sure there is nothing to prevent him accepting business if somebody PMs him unasked, and I'm sure he does.

Baz_2

whiteflag wrote: »

Under the treating customers fairly regime , your IFA cant just invent a fee to match what the commission would be. It would have to be x hours @ £Y

Where Y is the same amount as the commission and x is whatever it needs to be.

Its not difficult to do that. The last IFA prior to this one I was in touch with even said to me that any fee would be roughly the same as the commission.

It really is high time this whole system is changed as the one professional that should be above board are IFA's but the silly system makes it too easy to end up feeling like you are being fleeced. Whether you are or you are not.

dunstonh

The last IFA prior to this one I was in touch with even said to me that any fee would be roughly the same as the commission.

The amount you are investing puts you in that sort of range where there isnt a lot of difference between fee and commission. You are at the crossover point effectively.

It really is high time this whole system is changed as the one professional that should be above board are IFA's but the silly system makes it too easy to end up feeling like you are being fleeced. Whether you are or you are not.

It is from 2012. Fee option will be the only choice (although you will be able to use charges in the product to pay for it, which can be a good thing). The biggest problem is not so much IFAs but consumers. Most dont like the idea of paying for advice and have difficulty in realising that they are paying for it but out of their product. Perceptions can take a while to change and you also have to allow business models time to move over as well. If the move to fee only had occured 10 or 20 years ago then it would have wiped out loads of firms. The FSA has admitted that it fees that the 2012 changes will see the lower end of the market serviced by the banks, the top end serviced by IFAs but the middle ground left out.