Hsbc - ifa?

stringer_bell

I was looking for a new bank and notice HSBC offer an IFA, is this true? Website says they can offer them on a fee or commission basis and not tied to any products. What's the catch? Is it truly an IFA?

http://www.hsbc.co.uk/1/2/personal/investments/financial-advice/financial-advice/independent

gt94sss2

stringer_bell wrote: »

I was looking for a new bank and notice HSBC offer an IFA, is this true? Website says they can offer them on a fee or commission basis and not tied to any products. What's the catch? Is it truly an IFA?

Yes, but I believe you need to be a HSBC Premier customer. You may find their other advisors are tied.

Regards
Sunil

stringer_bell

gt94sss2 wrote: »

Yes, but I believe you need to be a HSBC Premier customer. You may find their other advisors are tied.

Regards
Sunil

I would qualify to be a HSBC premier customer

dunstonh

I was looking for a new bank and notice HSBC offer an IFA, is this true?

They meet the definition but in reality its more a panel. This can be recognised by the number of HSBC products they sell (something you would not expect from an IFA).

Also, above all, they are a salesforce. There is sales pressure, targets, sales managers etc. It doesnt matter if its tied, multi-tied or IFA. You should avoid salesforces.

Loughton_Monkey

stringer_bell wrote: »

What's the catch?

The catch is that a bank is far from the best place to go for investment advice.

An IFA has certain obligations, including making sure that the advice given is appropriate to your needs and meets your risk and timescale objectives. But they don't (as far as I know) have an obligation to advise the cheapest (lowest charging) products, nor indeed the 'best value' ones available to them.

This can be an issue with any IFA in the land, but with a 'Fee' based one there is more chance. But a bank salesforce, getting it's customers from HSBC, is likely to sell you lower value products.

dunstonh

But they don't (as far as I know) have an obligation to advise the cheapest (lowest charging) products, nor indeed the 'best value' ones available to them.

Cheapest is rarely best. Its a factor for consideration and can be a driver for some people but its just one part of the decision.

spenderdave

You don't need to be a Premier customer, but they will almost certainly try and get you to move to Premier - they did for me but I declined as I couldn't see any advantage.

I saw my local HSBC 'IFA' last year and he sold me a couple of products. Time will tell, but so far I have not been that impressed with them, and as you say they try and push their in-house products.

stringer_bell

spenderdave wrote: »

You don't need to be a Premier customer, but they will almost certainly try and get you to move to Premier - they did for me but I declined as I couldn't see any advantage.

I saw my local HSBC 'IFA' last year and he sold me a couple of products. Time will tell, but so far I have not been that impressed with them, and as you say they try and push their in-house products.

I'm just going to ask for a bog standard debit card account, as I do qualify for premier, do you reckon they will push me hard for premier? I don't want to pay £25 a month for the tat they offer

With Barclays, I was told my premier account would be free, but then I found out I was being charged. I asked why and he said because he wanted to check if I'm earning the right amount first haha Unbelievable

dunstonh

, and as you say they try and push their in-house products.

And that is bad and why they should be banned from being able to call themselves IFAs. Their in-house product range is poor. The God awful World Selection portfolios have been oversold for example by them without any justification. I can understand their FAs selling them as they have no choice but their IFAs should not.

gt94sss2

stringer_bell wrote: »

I'm just going to ask for a bog standard debit card account, as I do qualify for premier, do you reckon they will push me hard for premier? I don't want to pay £25 a month

HSBC Premier is free if you qualify for it - I have an account and can confirm this. I treat it as a normal current account and to qualify for their 8% Regular Saver.

I don't think they actually want customers to pay for HSBC Premier and are more likely to downgrade your account if you don't qualify for it.

I don't think HSBC will push you to have Premier unless you want too - as there is nothing in it for them in the short term. They are much more likely to ask you if you have considered their (fee paying) HSBC Advance account if you ask to open a standard account.

If you don't currently bank with HSBC, they have a HSBC Premier referral offer for existing customers to refer new ones to them - let me know if you would be interested in this.

Regards
Sunil

gt94sss2

spenderdave wrote: »

I saw my local HSBC 'IFA' last year and he sold me a couple of products.

Just out of interest are you sure it was a IFA and not an FA? I've never used either at HSBC and just curious..

they will almost certainly try and get you to move to Premier - they did for me but I declined as I couldn't see any advantage

Its a good way to qualify for the HSBC Regular Saver..

Regards
Sunil