Meeting more than one IFA before making a decision (and etiquette)

jonny2510

Is it normal/acceptable/expected to meet multiple IFAs before making a decision as to whom to use, when sorting out finances for retirement (not annuity/pensions)?

I'm trying to help sort out my Mum's finances (with an IFA), and suspect different IFAs may suggest different routes to go down.

We've met one so far for an inital meeting (information gathering for approx 2 hours) whilst we went through current situation, and they're due to get back to us with a suggested plan/proposal. Providing we accept, they'll start charging for services thereafter.

I'm happy to spend a couple of hours, with a few different IFAs to allow us to get a plan/proposal off each, to then choose the one we are most happy with. Would the IFAs I'm seeing be happy me doing this, or is some form of "exclusivity" expected?

If seeing multiple IFAs, should we mention we're seeing other ones?

I'd love to know what any IFAs specifically think about this. If someone else is going to be dealing with my Mum's money, I certainly don't want to get the relationship off on the wrong foot.

Apologies if this sounds trivial - It's a big decision to make, and we want to make sure we make the right one.

westy22

Is it normal/acceptable/expected to meet multiple IFAs before making a decision

The correct word is 'essential' - meeting 3 different IFAs would be common.

If seeing multiple IFAs, should we mention we're seeing other ones?

Certainly - it will help them to focus on giving you best value!

dunstonh

Is it normal/acceptable/expected to meet multiple IFAs before making a decision as to whom to use, when sorting out finances for retirement (not annuity/pensions)?

Its not unusual but it can create a few issues potentially but they can be worked around. Mainly on obtaining info from the existing providers. e.g. three IFAs seen in the order 1,2,3. They all obtain info from existing providers. If IFA 2 sends their authority letter in the same day or just after IFA 1 or the company has a bit of a queue on admin or uses different departments for different bits, then IFA 1 can lose their authority to get info because it has been superseded by number 2 or even 3.

Or if you use IFA 1 going forward, they will have to obtain authority again because it has been superseded by 2 or 3.

If seeing multiple IFAs, should we mention we're seeing other ones?

yes. It will prepare the IFA for potential problems. Especially if you are seeing them in quick succession. However, its nothing that cannot be worked around.

firsttimebuyers_2

dunstonh wrote: »

then IFA 1 can lose their authority to get info because it has been superseded by number 2 or even 3.

You may be able to get round this problem if you make sure that while you are speaking to (say) three IFAs, you only provide authority for information to be sent to them, rather than actually appointing them as your IFA. You should be able to have multiple IFAs receiving information on your plans.

weighty1_2

Hi Jonny2510,

Working in the insurance arena myself it is not unusual to come up against other brokers and vie for the same business, however, having worked closely within numerous IFA's over the years I would just say be completely open straight from the off.

Whilst you may not mind spending a couple of hours with each, they will have the meeting time, time and cost of travelling to see you, time spent collating existence information all for you to potential say that you're going with IFA B instead of A. Now, if they know about the competition up front then fine, but I for one wouldn't be too happy to have undertaken 10 or more hours work (unpaid) to then be told by my "client" that they are going elsewhere.

Whilst there's not a lot they can do about it if they offered a free initial meeting and report they may be less inclined to see you again if there was some future business which you were more inclined to use them for, due to specialist qualifications for example.

Just my 2cents.

RichandJ

I would suggest getting round dh's authority scenario by having the info sent direct to your mother then copying to the IFAs yourself. Also concur on being up front with different firms straight off.

gadgetmind

dunstonh wrote: »

Mainly on obtaining info from the existing providers.

What info might they want that wouldn't be in the cubic yard of paperwork one tends to receive every year?

RichandJ

gadgetmind wrote: »

What info might they want that wouldn't be in the cubic yard of paperwork one tends to receive every year?

Commutation & early retirement factors for eg if it's a FS scheme. Not usually included in info to members. Confirmation of reval & indexation rates & methodology. Other tech stuff that you don't normally burden members with.

dunstonh

What info might they want that wouldn't be in the cubic yard of paperwork one tends to receive every year?

The op doesnt say what for but lets assume pension transfer. You would want projections without ongoing and paid up to selected retirement age, current investments, other funds available, charges, any guarantees available, any add on products (waiver or life assurance) and discharge forms. The information would be required specifically listing if those things apply or not. The adviser cannot take your word for it. Providers will not be sending out that information each year.

Loughton_Monkey

By all means see more than one IFA, but I would suggest (a) don't see any of them until you are quite 'clear' on what you want them to do, and (b) make sure you give them all the same 'story'/information.

Far too frequently, I think, the task 'set' seems to be to 'sort out'. I'm afraid that without giving clear direction on what you want to achieve, this can mean different things to different people.

I suspect IFA's are used to this, and will have their own way of teasing this out, but different ones might infer different things. You might, for the first one, throw a load of pension plans down, and basically say "what is all this about and what will I get when I retire?". He might spend hours reading and 'understanding' what you have, and talk about transferring 3 of them, and leaving the other.....

And then you'll go to the 2nd IFA and throw the same paperwork down and specifically ask him to transfer these three....

For all anyone knows, your mother didn't have any real problem with her pensions, but may simply have £200,000 in Savings Accounts and want to know the best course of action.....

So here, you are really no comparing like with like.

jonny2510

Loughton_Monkey wrote: »

...For all anyone knows, your mother didn't have any real problem with her pensions, but may simply have £200,000 in Savings Accounts and want to know the best course of action.....

That's more on track really. All pensions are already currently being claimed already.

Some other slightly (I think) unusual circumstances on top of this, which has led me to advise her to get financial advice.

I'll approach another 1 or 2 IFAs in that case, but be upfront about everything, and let them decide.

Thanks for all the comments.