IFA asking for letter of authority

Tiggs_2

wotsthat wrote:

Except in this case the mechanic is opening the bonnet before a service has been agreed.

yes, but the OP said :

"I spoke to an IFA today regarding pensions advice."

The implication was that there was more to it that a 2 min phone call to a slimey bloke that got no further than name and address!

clairehi

Tiggs wrote:

yes, but the OP said :

"I spoke to an IFA today regarding pensions advice."

The implication was that there was more to it that a 2 min phone call to a slimey bloke that got no further than name and address!

In what way is my initial statement incompatible with what I have explained in later posts? I said in the intial post that we had not even met him.

EdInvestor

clairehi wrote:

To be honest it freaked me out. The way he put it made it sound like I was formally committing to him acting as our adviser, by signing the letter. He didnt explain what the scope of it would be.

Would it not mean that he would replace any previous IFA as the OP's representative? You normally have to sign such a letter when you appoint a new advisor.

In any case its not that we had an IFA before as there was no original IFA in the case of the 2 occupational schemes, and the person who sold my OH his protected rights scheme in 1991 is lost in the mists of time.

This person may not be 'lost in the mists of time' at all.

He may be receiving annual "trail commission" from the pension provider for selling the orginal policy.The letter of authority would probably transfer the right to receive this commission money to the new IFA.

dunstonh

He may be receiving annual "trail commission" from the pension provider for selling the orginal policy.The letter of authority would probably transfer the right to receive this commission money to the new IFA.

Individual members of old group schemes cannot be transferred to new advisers (With the exception of Standard Life). The ownership is the group scheme and the directors/owners of the company would have to sign that one over. The majority of group schemes pay not trail.

EdInvestor

Is the PR policy in a group scheme?

clairehi

No its not in a group scheme, it was sold to him as an individual.

I have posted an update on the other thread. Thanks all for your input. I am learning a lot from you!

Chrismaths

An agency transfer letter is a simple request to allow the new IFA to access the information that the original IFA/adviser/broker had access to.

An agency transfer letter transfers the servicing commission (and responsibility) to the new adviser. A letter of authority gives the adviser the authority to get information on a policy. Very different beasts.

When we take on a new client we get a generic letter of authority from them to get information - we don't do an agency transfer unless we are willing to take on the servicing of that particular policy.

A_Nice_Englishman

I suppose one way round clairehi's problem would be for the IFA to draft a letter for her to send to all the relevant providers requesting the necessary information. She could then take / send it on to the IFA.

Tiggs_2

Chrismaths wrote:

When we take on a new client we get a generic letter of authority from them to get information - we don't do an agency transfer unless we are willing to take on the servicing of that particular policy.

same here - and it would be a bit of a cheek to just transfer the agency without making the client aware that there are financial implications to the FA for doing so.

nelliebag

I work for an IFA and a Letter of Authority is standard to complete information gathering and then offer advice. My advice is to only go to an IFA who has been personally recommended by someone you trust.