Hsbc ifa?

cheesesarnie

hi...have a lump sum to invest & because of current ac banking, had an initial chat with a HSBC IFA (at least they said they were independant)...wondered whats the opinion of HSBC advisors..are they truely independant & what should I be comparing with other IFAs before I decide who to go with?

thanks for help

Lokolo

They will be sellng HSBC products I imagine. So technically, they aren't IFAs.

Aegis

Lokolo wrote: »

They will be sellng HSBC products I imagine. So technically, they aren't IFAs.

Not quite. They technically have access to a representation of the whole market, however they have a white list of investments they are allowed to recommend, and last time I checked that list contained around 15 funds, about a third of them HSBC funds (which I've never seen recommended by actually independent advisers). The initial charge is likely to be 3% on everything, with no discount given in respect of the trail commission, so it's a very expensive price to pay for an adviser who is really more multi-tied than independent.

dunstonh

HSBC IFAs are closer to a panel than independent. The meet the FSA criteria for independent but they sell too many HSBC products. As HSBC products are typically not that good, you have to question their independence. As Aegis says, its more multi-tie than in reality.

.are they truely independant

No. They cant be. They have an employer that gives them sales targets and credits for selling their own brand products. Regardless of adviser type, you shouldnt seek advice from a salesforce.

icycool

cheesesarnie wrote: »

hi...have a lump sum to invest & because of current ac banking, had an initial chat with a HSBC IFA (at least they said they were independant)...wondered whats the opinion of HSBC advisors..are they truely independant & what should I be comparing with other IFAs before I decide who to go with?

thanks for help

Unless you intend to buy HSBC mortgage related insurance products or female whole life protection. I will not bother about HSBC.

How can an IFA be tied to a company that basically defeats the purpose of Independence right? It is oxymoron

icycool

cheesesarnie wrote: »

hi...have a lump sum to invest & because of current ac banking, had an initial chat with a HSBC IFA (at least they said they were independant)...wondered whats the opinion of HSBC advisors..are they truely independant & what should I be comparing with other IFAs before I decide who to go with?

thanks for help

one lump sum. lol. better not be conned to invest in single fund. Go read up on portfolio theory, before investing

Rollinghome

cheesesarnie wrote: »

hi...have a lump sum to invest & because of current ac banking, had an initial chat with a HSBC IFA (at least they said they were independant)...wondered whats the opinion of HSBC advisors..are they truely independant & what should I be comparing with other IFAs before I decide who to go with?

thanks for help

They aren't independent but then neither are most so-called Independent Financial Advisers - as long as the fund managers continue to pay them commission to sell their most profitable products; a practice to be banned by the FSA by 2013.

As Paul Lewis of BBC Moneybox has put it: 'there are three types of advisers, tied, multi-tied, and independent... All three are salespersons'.

One way is to use one of the few advisers who work exclusively on a proper fee basis and rebate all commission. More important, as with any expensive purchase, is to do your homework first and don't just rely on sales talk.

Funds

dunstonh wrote: »

HSBC IFAs are closer to a panel than independent. The meet the FSA criteria for independent but they sell too many HSBC products. As HSBC products are typically not that good, you have to question their independence. As Aegis says, its more multi-tie than in reality.


No. They cant be. They have an employer that gives them sales targets and credits for selling their own brand products. Regardless of adviser type, you shouldnt seek advice from a salesforce.

Can I suggest that you remove that post young man. You are either seriously mis-informed, or lieing.

Aegis

Funds wrote: »

Can I suggest that you remove that post young man. You are either seriously mis-informed, or lieing.

It's neither, both points are true. The HSBC IFAs have minimum targets for selling (as do all salesforces) and, at the point where I left the bank, were required to explain to their manager why they hadn't recommended the HSBC World Selection fund if they gave any investment advice that didn't include one of those portfolio funds.

Which of the points in particular do you object to?

Lokolo

And Dunston young??? :D

dunstonh

Funds wrote: »

Can I suggest that you remove that post young man. You are either seriously mis-informed, or lieing.

You tell us then why they sell so many poor quality own-brand HSBC products then when there is absolutely no justification for picking them.

They are either being pressured by their sales managers to do so or they are being remunerated extra for doing so. If there was no incentive or pressure then they wouldnt be recommending such poor quality options.

Tell us what happens to them if they dont sell enough?