Investments - Change of Agency

fwor

I have a half a dozen investment plans and bonds which were taken out around six years ago at the advice of a previous Financial Adviser.

My current IFA has requested that I sign a Change of Agency Authority to transfer the servicing rights for those plans to him.

I can understand that it makes sense, in that it would make it easier for him to obtain information about the plans, but is there any downside that I should be aware of?

His correspondence makes no reference to any charges for the change of agency - is it fair to assume that no charge will arise unless explicitly stated to me?

noh

There will be no charge to you for the change of agency.
At present your previous FA will probably be receiving trailing comission from the providers of these plans. When you change agency your current IFA will receice these comissions.

dunstonh

but is there any downside that I should be aware of?

None whatsoever

His correspondence makes no reference to any charges for the change of agency - is it fair to assume that no charge will arise unless explicitly stated to me?

There is no charge or change of policy details. It just appoints the new adviser as the servicing agent.

Without it, the new IFA wont be able to access details about your plan or investments and it wont integrate with their back office system and basically makes it impossible to give best advice.

fwor

noh wrote: »

At present your previous FA will probably be receiving trailing comission from the providers of these plans. When you change agency your current IFA will receice these comissions.

Thanks for the replies.

All of the policies were on a diminishing penalty for cashing in early, which drops to zero after 5 years - is it fair to assume that the trailing commission will also drop to zero after the same 5 year period?

Obviously I would like that not to be the case, as I'd prefer the new IFA to be getting some reward for taking them on. If he isn't getting anything then I'd like to be aware of the fact.

noh

fwor wrote: »

Thanks for the replies.

All of the policies were on a diminishing penalty for cashing in early, which drops to zero after 5 years - is it fair to assume that the trailing commission will also drop to zero after the same 5 year period?

Obviously I would like that not to be the case, as I'd prefer the new IFA to be getting some reward for taking them on. If he isn't getting anything then I'd like to be aware of the fact.

I don't know the answer to that.
Best to ask your present IFA.

dunstonh

All of the policies were on a diminishing penalty for cashing in early, which drops to zero after 5 years - is it fair to assume that the trailing commission will also drop to zero after the same 5 year period?

The IFA will be able to answer that but chances are that there is no trail being paid or if there is then its paid for the life of the plan. The IFA wont know until he finds out from the provider. If you held on to the original illustration, it would say on there if there was an annual trail payment.