IFA charges

dunstonh

If instead of a "Client Agreement" they give you a "Terms of Business" be wary - it could mean they are still using obsolete documents which in turn could mean their compliance is not as good as it ought to be.

As I understand it, there is currently no mandated layout. Unlike the IDDs from a few years back (what a waste of money by the FSA that was).

Also, many IFAs have incorporated their terms of business in into the key facts or guide to services document. So, you may well see terms of business referred to within a compliant document. (I assume you are referring back to the days when the IDD and terms of business were two individual docs).

Personally, we have a guide to services doc for initial disclosure (which has a section at the back called terms of business) and a client agreement which is personalised with the services and costs which is issued on second visit (or posted or emailed in advance of second meeting) once you have the details to be able to personalise it and detail what services and fees were agreed.

I just visited a few IFA sites via google from firms using different compliance to me and found their layouts were similar to mine. All had TOB in the back of the document as another section except one who didnt have TOB mentioned but had all the stuff you find in a typical TOB. So, it was there in all but name.

magpiecottage

dunstonh wrote: »

As I understand it, there is currently no mandated layout. Unlike the IDDs from a few years back (what a waste of money by the FSA that was).

Also, many IFAs have incorporated their terms of business in into the key facts or guide to services document. So, you may well see terms of business referred to within a compliant document. (I assume you are referring back to the days when the IDD and terms of business were two individual docs).

There is no specified format, although the SCDD is considered by the FSA to be a "Safe Haven" on which to base the current initial documentation.

My concern is that some IFAs are still using terms of business which are clearly intended to meet standards required by FIMBRA which went out over 16 years ago. When I see those I normally find I have a great deal of work to do.

Firms with modern client agreements tend to be much more on the ball generally - although sometimes the CA can be tilted unfairly in favour of the firm.

dunstonh

My concern is that some IFAs are still using terms of business which are clearly intended to meet standards required by FIMBRA which went out over 16 years ago. When I see those I normally find I have a great deal of work to do.

Blimey. You had me worried for a minute. I didnt realise you were going back that far!!! I was thinking things that may have changed in the last 6-12 months. not 6-12 years. Still, you must love it when you see the old ones as it just proves your worth to them.