How 'independent' is independent?

EdInvestor

dunstonh wrote:

Just goes to show that you cannot believe what you read in the press. That Scottish Life pension actually pays a maximum commission of 4.5%. However, on fee basis, they allow upto 7.5% and on that basis the annual management charge can drop to as low as 0.4%. On terms of 20 years or more that would make that contract cheaper than stakeholder.

As per usual, if you rely on press articles for your research, you will only get a one sided, negative and often incorrect picture.

If you read the report properly you will see it isn't criticising the Scot Life pension at all, but rather others which are much more expensive. :rolleyes:

dunstonh

EdInvestor wrote:

If you read the report properly you will see it isn't criticising the Scot Life pension at all, but rather others which are much more expensive. :rolleyes:

So?

The need for higher charges within the pension and the benefit to a client has already been mentioned on another thread.

EdInvestor

Commsiion ripoffs are back

Sunday Telegraph on the 20% upfront commission on the Prudential pension.Quite a lot of criticism from other IFAs.

whiteflag_3

EdInvestor wrote:

Commsiion ripoffs are back

Sunday Telegraph on the 20% upfront commission on the Prudential pension.Quite a lot of criticism from other IFAs.

So what your saying Ed is that when joe punter goes to an adviser and the keyfacts menu shows their maximum commission of 20% against a market average of 4% , joe is just going to say "thats great". I think the reaction will be to ask some fairly serious questions or even walk away.

dunstonh

The adviser cant take 20% commission either if their keyfacts menu doesnt have a figure that high.

Sharpie

dunstonh wrote:

The adviser cant take 20% commission either if their keyfacts menu doesnt have a figure that high.

and not withstanding the above from dunstonh - every professional IFA would give the cost (or a decent estimate) of a job to a client in advance, in plain english, (so that everyone knows where they stand), and how this can be paid- i.e either by commission or fees...it's extremely unlikley that a decent IFA would take anything like 20%- the majority would be rebated for the benefit of the client.

jamesd

The adviser just won't include the menu, 'keyfacts about the cost of our services' document, if they want to charge too much. Mandatory requirement of the Conduct of Business rules but not supplying it still happens. If you don't get one, it's a clear warning sign that you're being ripped off.

Here's a link to the latest market averages for use in the menu.

Tiggs_2

Its a bit of a joke really - two of the most important documents to see are the Key Facts (and terms of business) and the suitability letter - yet all could be easily be with-held by the adviser and NO ONE would ever know.

I have had ALL my clients sign (for the last few years) to confirm they have all such documents and are happy with them - its the sort of thing EVERY firm/network/etc should get their advisers to do yet i have never heard of anyone else doing it let alone a body enforcing it!

dunstonh

I have been thinking about getting a read and received signature on my suitability reports for a while. Most of mine are issued prior to sign up though which i think increases the protection it gives me.

whiteflag_3

Tiggs wrote:

Its a bit of a joke really - two of the most important documents to see are the Key Facts (and terms of business) and the suitability letter - yet all could be easily be with-held by the adviser and NO ONE would ever know.

I have had ALL my clients sign (for the last few years) to confirm they have all such documents and are happy with them - its the sort of thing EVERY firm/network/etc should get their advisers to do yet i have never heard of anyone else doing it let alone a body enforcing it!

You have now Tiggs !

Hope your not to disappointed that your not part of an exclusive club. Although in my experience not a very big club either!;)