IFA Money For Nothing

GandalfTheTight

dunstonh wrote: »

So, why didnt they recommend tracker funds then?

I wondered that too. My guess is that, as you say, the risk of a misguided recommendation is too high and they are moving towards different forms of financial advice. So for the sake of £400 they would sooner not do the work and hold out for the 10k Jobs where it is worth their while.

dunstonh wrote: »

Liability and potential liability along with regulation compliance are some of the biggest issues in retail distribution and advice at the moment.

It is a shame there is no way round it – Standard Life give the fee, my existing IFA doesn’t want it (in fact he was quite keen NOT to have it!). There must be millions of pounds worth of these fees as people move money to avoid the new 100k earnings tax bracket, and all those who just renew their ISAs.

dunstonh wrote: »

Surely it would be better to work on fee basis and get the product set up commission free?

But that would mean moving the pension fund – this one makes no odds if the IFA take the money or not. I still get charged 1% yearly.

dunstonh

But that would mean moving the pension fund – this one makes no odds if the IFA take the money or not. I still get charged 1% yearly.

It does mean moving it but if you can get 0.2% TER instead then the cost and time of moving it will probably be quickly recovered.

You are on a commission based product. You need to be on a fee based product.

cvd

It is a shame there is no way round it – Standard Life give the fee, my existing IFA doesn’t want it (in fact he was quite keen NOT to have it!).

Is this not a criticism of Standard Life? If you agree to sign one of Standard Life's standard documents that you understand that you should take financial advice but have chosen not to do so, then they should be prepared to pay the fee to a charity - instead of keeping the fee for themselves.

(There is such a standard document because I have signed one!)

GandalfTheTight

dunstonh wrote: »

It does mean moving it but if you can get 0.2% TER instead then the cost and time of moving it will probably be quickly recovered.

Is 0.2% POSSIBLE on a tracker? That would save me a few hundred pounds a month!

Is there a current list of the TER figures for funds in a pension anywhere?

dunstonh

Is 0.2% POSSIBLE on a tracker? That would save me a few hundred pounds a month!

Yes. The near complete rangeof blackrock institutional trackers are available at between 0.2% and 0.29% (so thats every sector including emerging markets). A number of contracts also offer the HSBC and L&G trackers as well.

Is there a current list of the TER figures for funds in a pension anywhere?

Most providers will offer a funds list. You wont find them on old fashioned legacy pensions like yours though. You need a platform based pension or a post RDR compliant personal pension.