IFA VS Tied Agent

gsmith2010

Hi All,

I got a phone call today by a sales representative from Barc Bank. I know I have no obligation to speak to these people, but would be nice to have some sort of answers to this sort of stuff. I realize Banks are a horrible place to invest money, Here is list of answers the guy gave me. Is he lying?

1/ Banks products perform worse than others

He replied that it's nonsense, and he had a fund that returned 90 percent this year

2/ An IFA is cheaper

He says IFA charge just as much as they do

3/ Banks can only sell their own products

He commented that Barc have a wide variation of products from other providers

4/ Agents are incentive based by commission

He said their agents do earn commission ( They closed it now ) but they dont earn more money for different products. For instance, they wouldnt earn more money by putting it into one product than another

I have a feeling he is a bit desperate!

Annisele

I thought Barclays was pulling out of the advice market? Wouldn't surprise me if a bit of desperation set in.

1. So he picked out one fund that performed well...IFAs can do that too! You'll always be able to find one fund available through a bank that did better than a badly-performing fund in another sector.

2. Some IFAs are very expensive - especially if they don't want a particular type of business; they'll price themselves out of the market rather than actually refuse a customer. If you look hard enough, you probably will find an IFA who will charge you more than Barclays will.

3. Tied agents can only sell the products on their list.

4. Oh really? So they get just as much money out of recommending that I stick my money in a current account as they do when the recommend a stocks and shares ISA?

Totton

Ignore all investment 'cold calls' :beer:

Loughton_Monkey

gsmith2010 wrote: »

.... I know I have no obligation to speak to these people, but would be nice to have some sort of answers to this sort of stuff. I realize Banks are a horrible place to invest money, Here is list of answers the guy gave me. Is he lying?

Main question to ask him: "Have you ever - even by accident - told the truth?"

dunstonh

Barclays are pulling out but there is probably a last minute rush to sell as much as they can.

Answers are what you expect but they dont exactly answer the questions directly or honestly. Barclays are multi-tied. That means they have a limited panel that uses multiple providers. Not many but enough for them to be able to say that they offer from a range of companies and not just one. They are still salesforce priced though.