A new financial advisor

jem16

whiteflag wrote: »

bit unnecessary but never mind-i havent been in the habit of ignoring you Jem so why would I start now.

You had already replied to the thread but not to my question - hence the clarification. As to why you might ignore me - perhaps you didn't like the question?

Thank you though for answering my question although I'm still not entirely sure whether I would have to pay once or twice.

At least we appear to agree on something - its disturbs me no end . We havent spent the last 18 months ( over 200hrs which is alot for a small business) completely re-engineering the way we work and the way we get paid, for nothing. The FSA hasnt come up with TCF and the RDR for nothing.

It's not the fact that there are some IFAs who are not up to scratch that disturbs me - it's your idea that practically all IFAs are useless unless they follow your model that disturbs me.

Jem I hope I answered your questions so perhaps you will good enough to outline the "service" your IFA offers you and what he charges.

If I thought you were actually interested in the service offered I would. However your use of quotation marks around service suggests that you don't actually think my IFA offers any worthwhile service so I don't think it will serve any suitable purpose.

jem16

whiteflag wrote: »

But thats where we add value , by doing the planning and chosing the correct wrapper. For example deciding a client is going to go into drawdown at 45 and choosing the wrapper to take them to 75 now etc.

That wasn't what I said though, was it.

Yes you are choosing the wrapper. However what you are not choosing is what kind of funds go into what tax wrapper as that is the multi-manager's job.

With a portfolio of mixed investments it could be crucial what fund goes where. With a multi-manager fund this may not be possible as it can't be fine-tuned to each individual client's requirements.

whiteflag_3

jem16 wrote: »

It's not the fact that there are some IFAs who are not up to scratch that disturbs me - it's your idea that practically all IFAs are useless unless they follow your model that disturbs me.

I think that is completely out of order. Ive re read the thread and several other recent threads an I cant see where Ive said anything like that. Its a sad reflection of these forums that the person who brings to the notice of readers the real truth about IFAs qualifications when it comes to picking funds is the one who gets it in the neck.

If I thought you were actually interested in the service offered I would

Well I really dont know what to say to that. After all the recent dialogue to say that Im not interested...............im genuinely disappointed Jem

jem16

whiteflag wrote: »

Its a sad reflection of these forums that the person who brings to the notice of readers the real truth about IFAs qualifications when it comes to picking funds is the one who gets it in the neck.

You say they aren't qualified and dunstonh says they are. So right away we have a conflict.

Well I really dont know what to say to that. After all the recent dialogue to say that Im not interested...............im genuinely disappointed Jem

I'll rephrase that then - you are interested but for the wrong reasons I feel. The service I have suits me and I'm more than happy with it.

whiteflag_3

jem16 wrote: »

You say they aren't qualified and dunstonh says they are. So right away we have a conflict.

I posted this in case you missed it
http://forums.moneysavingexpert.com/showpost.html?p=25560827&postcount=37

Dunstonh hasnt added anything to back his claim.

I'll rephrase that then - you are interested but for the wrong reasons I feel. The service I have suits me and I'm more than happy with it

well you feel wrong! I have been completely open and honest with you.

dunstonh

Dunstonh hasnt added anything to back his claim.

I didnt think my point needed backing up as its pretty obvious that IFAs are allowed to recommend investments. The FSA website for consumers has a bit on investment advice:

http://www.moneymadeclear.fsa.gov.uk/products/advice/financial_advice.html

Types of investment advice

There are three types of investment advice.

1. Independent advice – where advisers make recommendations on products after researching the whole market and offer you the opportunity to pay by fee for their advice.
2. Multi-tied advice – where advisers are able to recommend the products of a limited selection of providers.
3. Tied advice – where advisers can only advise on the products of one provider.

<snip>
What to expect

The adviser will give you details of the service they offer and the range of products they can advise about. They’ll also give you details of how you can pay for this service. Use the information from different firms to help you shop around and compare what is being offered.

Once they’ve discussed your goals with you they’ll give you a written recommendation of which products are suitable for you. They’ll also give you information about the product which should answer questions about:

• its aim;
• your commitment;
• how your payments are invested;
• the main risks; and
• the tax position.

The adviser will also tell you about the fees and charges and how they will affect your investment.

Lokolo

dunstonh wrote: »

Show me where in the FSA rules that it says that IFAs should not recommend investments?

What are packagaed investments? (or am I right in assuming they are funds and such....)

dunstonh

Lokolo wrote: »

What are packaged investments? (or am I right in assuming they are funds and such....)

correct. Not all investments are available to IFAs to recommend. This is why some IFAs have an in house stockbroker or refer to one when required. Packaged investments is one of the names given to the types advisers can recommend.

IFAs and tied agents are often referred to as investment advisers or designated investment advisers to differentiate them from mortgage and/or insurance advisers.

Lokolo

dunstonh wrote: »

correct. Not all investments are available to IFAs to recommend. This is why some IFAs have an in house stockbroker or refer to one when required.

Aweome thanks. And whilst you're here....

Me,_The_Amazing_Lokolo wrote:

Doesn't CF2 cover the basics of needing to know how to build a portfolio depending on risk profile? Or is there another part for this?

On the brochure it said this:

At the end of this unit, candidates should understand the:
• economic and other factors affecting
investment returns;
• key features of the different asset
classes and product types and the role
of ethical investment in financial advice;
• risks involved in investment, how
risks affect returns and the risk profile of
investors;
• taxation considerations in the
investment process;
• importance of asset allocation in
investment decisions;
• effect of other issues on investment
planning.

And from the looks of the other Certificates it didn't seem as though there was one for picking out investments in particular, that was the cloest one.

whiteflag_3

dunstonh wrote: »

I didnt think my point needed backing up as its pretty obvious that IFAs are allowed to recommend investments. The FSA website for consumers has a bit on investment advice:

http://www.moneymadeclear.fsa.gov.uk/products/advice/financial_advice.html

Types of investment advice

There are three types of investment advice.

1. Independent advice – where advisers make recommendations on products after researching the whole market and offer you the opportunity to pay by fee for their advice.
2. Multi-tied advice – where advisers are able to recommend the products of a limited selection of providers.
3. Tied advice – where advisers can only advise on the products of one provider.

<snip>
What to expect

The adviser will give you details of the service they offer and the range of products they can advise about. They’ll also give you details of how you can pay for this service. Use the information from different firms to help you shop around and compare what is being offered.

Once they’ve discussed your goals with you they’ll give you a written recommendation of which products are suitable for you. They’ll also give you information about the product which should answer questions about:

• its aim;
• your commitment;
• how your payments are invested;
• the main risks; and
• the tax position.

The adviser will also tell you about the fees and charges and how they will affect your investment.

No cant see anything about qualifications there.

my god your hard work Dunstonh- I think I advised you last week to re read threads before replying but still you choose not to.

You might see then that I have not questioned the authority, its the qualifications. IFAs dont need the IMC qualifications to pick funds.

They can charge extra for picking funds and putting together portfolios with only the basic FPC 1,2 & 3 qualifications - true or false

Do you believe the basic FPC is a good enough qualification for IFAs to be able to prove that they are experts in portfolio planning and fund picking? yes or NO?