Opinions sought on Skandia CRA transfer

dunstonh

Not sure what EXPLICITLY CHARGED means?

it means you are only charged what you agree with the adviser. The provider isnt factoring in commission into the charges of the product over a period.

Because SKANDIA insist on using an IFA there is not so much upfront visibility on their fees.

Skandia only has a £52.32 p.a. fee. The rest of the charges are the funds and what you agree to pay the adviser. There is a drawdown fee on drawdown cases. So, the fees list is a lot less than the SIPP.

The comment I was really referring to was the following:
* You have to use (and pay!) an IFA for the SKANDIA option, so no surprise that IFA's are keen to recommend

It was that which doesnt make any difference as if you cut out the IFA agreed charge, its probably cheaper than the Alliance SIPP. Skandia only pay what the IFA and the client agrees. So, there is no bias to provider as the IFA gets paid the same irrespective of provider recommended.

However, Skandia does allow the IFA to rebate trail commission. So, whilst you will have to pay an IFA to set up the contract, the rebated trail on a large pot could more than make up for that compared to a DIY option that does not rebate trail.

I am not saying its a better option but it is a viable option when comparing with say HL or other SIPP providers that keep trail.

Gatser

lamb1102 wrote: »

Spoke to IFA today....


His 0.5% ongoing includes servicing and rebalancing with no switch charges, so the number of funds will not incur added cost.
His commission is taken from fund based trail with excess rebated.

The RIY is 1.6%

Im inclined to go with this as opposed to the SIPP as I believe this will be actively managed whereas any SIPP I set up may be a bit cheaper but I dont trust myself to manage it as well as an experienced IFA.
He also spoke of rebalancing more than once a year with no extra cost as he believes that could improve returns and therefore his remuneration.

Very useful feedback thank you.

I can see the advantage of letting your IFA have the 0.5% trail commission in exchange for ongoing advice/fine tuning. As you say, its in the IFA's best interests to increase your fund values because their fees are based upon that!

I don't think ALLIANCE TRUST refund any trail commission... presumably they keep it as their charges are so low.

Wouldn't it be easier if all these pension providers used ONE set of charges, fees, commissions, rebates etc.

Gatser

dunstonh wrote: »

However, Skandia does allow the IFA to rebate trail commission. So, whilst you will have to pay an IFA to set up the contract, the rebated trail on a large pot could more than make up for that compared to a DIY option that does not rebate trail.

I am not saying its a better option but it is a viable option when comparing with say HL or other SIPP providers that keep trail.

Thanks for your comments.
Good points!

I can see the advantage of SKANDIA and respect the fact that if you have chosen them (yourself) as an IFA....

Gatser

dunstonh wrote: »

Skandia only has a £52.32 p.a. fee. The rest of the charges are the funds and what you agree to pay the adviser. There is a drawdown fee on drawdown cases. So, the fees list is a lot less than the SIPP.

Are you able to disclose please, what does the Skandia CRA cost for:
* Setting up a USP (and an annual USP fee?)
* Buying/Selling funds?

Thanks

dunstonh

Are you able to disclose please, what does the Skandia CRA cost for:
* Setting up a USP (and an annual USP fee?)
* Buying/Selling funds?

no cost for buying/selling funds. (bid/bid basis) except on soft closed funds (soft close would affect all providers)
Annual charge of £53.46 (annually indexed) for having USP. No set up charge.

Gatser

lamb1102 wrote: »

As for the £1600 (charges) , well this sounds a lot but as far as I can see the commission is coming from the funds but if I managed my own I may not get the same amount of trail rebated, as I understand.

If you go through a discount broker like CLUBFINANCE, I believe they only charge (take) 0.1% out of the trail commission and you get all the rest rebated (refunded) to your pension fund.

£320k x 0.1% = £320

That gives you £1,280 to spend (if you wish) with an IFA for ongoing advice.

Anyone had dealings with CLUBFINANCE?