Must I use an IFA?

whiteflag_3

jem16 wrote: »

Going by some of your recent posts I have to agree with you - my pupils are better behaved.

does that mean im going to get 6 of the best, or does that cost extra?

bogeysmum

Getting back to the original post though, I think it sounds as though you haven't found the right IFA for you. Most insurance companies prefer you to deal with an intermediary because they are not authorised by the Financial Services Authority to provide advice. They are only permitted to to provide you with information. You are perfectly at liberty to change your IFA at any time. You can either try the unbiased.co.uk website for a list of IFAs in your local area, or read some of Martin's articles on here regarding pensions and see who he recommends.

jem16

whiteflag wrote: »

does that mean im going to get 6 of the best, or does that cost extra?

I'm not allowed to give advice.

However in the interests of discussion, corporal punishment was abolished back in the early 80s - you're still in the dark ages.

EdGasket

eenymeenyminymo has my sympathy; I too begrudge paying an IFA thousands of pounds just to 'get in the way'
I have found insurance companies repeatedly say they will only do this or that or only deal with me through a financial advisor. This is most frustrating as I know what I want; why should I pay someone to repeat back to me what I say to them? The areas I have been told I need to use an IFA for have ranged from transferring a pension, setting up a drawdown, or even simply applying to open a pension ! Not all companies are the same; some will do more with you directly than others.

bogeysmum

You could always ask an IFA to simply carry our your instructions; this is known as 'execution only'. This is where you have chosen the company, the product, the premium, the funds etc (as appropriate) and merely asked the IFA to carry out the transaction your behalf. You would have to sign a letter to that effect, and in fact it is better if your instructions are handwritten by yourself, to reduce the possibility of coercion.

Not all IFAs are prepared to act on 'execution only' but most should be.

EdGasket

Good idea; I havn't heard of execution only IFA's lol, only execution only brokers. I bet they will still charge a packet. For instance my friend wanted an income drawdown; knew exactly how much etc. but had to literally pay an IFA thousands to arrange it; just for a few forms ! Its almost a year's salary for some people !

bogeysmum

Well, as with most things in life there are good and bad IFA's. If you know exactly what you want the best thing would be to ring round a good number, both local and national firms, tell them what you are after and ask for a fee quote. It doesn't always mean you have to pay a cheque for their fee (unless you wanted to of course). They are able to take their fee from the fund in many cases.

As a newbie, I do worry that a lot of the posts I read in this forum end up IFA-bashing, rather than dealing with the original question posted.

dunstonh

Good idea; I havn't heard of execution only IFA's lol, only execution only brokers.

Virtually all IFAs can do execution only. Execution only brokers are usually IFAs. The term broker is actually mis-used in those cases as they are still intermediaries. However, it has seemed to stick with some people (including this site).

I bet they will still charge a packet.

Not normally.

Its almost a year's salary for some people !

That has nothing to do with it. If the transaction is the near a yearly salary for that person then they shouldnt be doing that transaction as its almost certainly going to be wrong for them.

For instance my friend wanted an income drawdown; knew exactly how much etc. but had to literally pay an IFA thousands to arrange it; just for a few forms ! Its almost a year's salary for some people !

Why didnt he ask another IFA then who would probably have done it either free of charge initially (because the trail commission would have been worth it) or a small fee with trail commission rebated?

However, an IFA should not transact on execution only basis on certain transactions which are considered high risk or when the IFA knows or believes the transaction to not be in the best financial interests. This nearly always rules out Final salary scheme transfers as statistically, 9 out of 10 should not be transferred.

As a newbie, I do worry that a lot of the posts I read in this forum end up IFA-bashing, rather than dealing with the original question posted.

They do and many of those that bang on about IFAs have never used on or last time they did was 10-15 years ago when things were very different.

EdGasket

My friend did shop around and the IFA he used was the cheapest quote; still thousands; still a complete rip off !

bogeysmum

This is of course without knowing what the IFA actually did for the fee. It is very easy to criticise without perhaps knowing the amount of work involved.

Anyway guys, can we agree to disagree on this issue now please?