Is this right??

dunstonh

Those charges dont seem too bad. The platform separates the charges so the annual management charge of the fund will be lower than the retail price. You then add back on the platform and adviser charge. Swings and roundabouts really as the unbundled charges typically match or more or less match the bundled charge. (I think james was thinking they were on top of the retail charge. They are not, the commission on them is rebated back into the investment and typically cancels out the adviser charge)

I cant see why there would be a different charge with different tax wrappers though. That isnt logical. Also, the FSA want to get rid of charge differentials between the different types of assets so charging one rate for one thing and another for a different type is on its way out.

Another requirement is that the platform used for investments should match the client needs. Not the adviser needs. You would want to find out if an analysis of the platforms has been done and why the ascentric platform was suitable (there are cheaper. So, what is it that asecentric offer that your mother would use that makes it worth paying for. Paying extra for something is fine as long as you use it. If you dont then its a waste of money).

by the way when we went to see this advisor he had no brochures or website to look at about this company when he has said it has been going since feb this year,

That is quite normal. Most don't have websites or brochures. Most IFAs are small local firms dealing with local people. A website is often a complete waste of money and also a pain in the neck to keep compliant. Glossy brochures tend to be issued by the sales companies who are usually the ones to avoid.

David_HP

May I suggest , speaking as a private investor, who has already been through this minefield, that you look at the qualifications of the adviser, ask if they are at least level 4 the new regulator standard for the future. I would also insist on them being totally rewarded by fees and ask them how they are paid ie by salary or commission. they should be working for you or your mother not themselves. If they are small ask them what are their capital reserves and how do they get their advice. I would worry about a new start up as they might not last. Finally on costs cheapest is very unlikely to be best ask them what all the costs are including the investment costs for the underlying funds , admin ,custody and how much they take from this. The costs you outlined for a small firm are high and they have not told you the underlying funds cost at all. I would go with a firm that is likely to be around in the future and has some financial backing but not a commission based company. Very soon (post 2012) all these firms will have to move to a fee basis and will have to have only level 4 qualified advisers , You should not compromise on this, there are plenty of firms who have made the change already. Best of luck and dont compromise on quality!

pebbles392

A very big THANKYOU to everyone who has taken the time to help me on this and all your advice has been very interesting to read and i really have learnt something from this and will be lookng out for the points you have mentioned when i find another investment company. Thankyou