Meeting an ifa

MarcoM

Hi

I would like to know how is money transferred to an IFA should the customer agree with the IFA's plan. Are payments made by cheque to the individual investment or to the IFA firm?
I take it no payment should be made in the name of the IFA.

Thanks

dunstonh

An IFA is a facilitator. The money doesnt go to the IFA. It is written to the provider.

Only the fee should go to the IFA if you are doing it that way.

MarcoM

dunstonh wrote: »

An IFA is a facilitator. The money doesnt go to the IFA. It is written to the provider.

Only the fee should go to the IFA if you are doing it that way.

thanks. as an ifa have you ever experienced delays due to stupid banks querying client's cheques and / or payments out of their account into different products?

Aegis

MarcoM wrote: »

thanks. as an ifa have you ever experienced delays due to stupid banks querying client's cheques and / or payments out of their account into different products?

From my perspective - oh yes. Many banks seem to stop client cheques for the most trivial reasons when they go to investment products that are competitors. It's difficult to prove, but you often wonder if it's motivated by them wanting to refer that business to their internal teams instead.

MarcoM

Aegis wrote: »

From my perspective - oh yes. Many banks seem to stop client cheques for the most trivial reasons when they go to investment products that are competitors. It's difficult to prove, but you often wonder if it's motivated by them wanting to refer that business to their internal teams instead.

surely the client has the right to sue a bank for doing something like that? what reason do they give for stopping a cheque?

Aegis

MarcoM wrote: »

surely the client has the right to sue a bank for doing something like that? what reason do they give for stopping a cheque?

Often the reason given is "not signed in accordance with mandate" - i.e. someone decided there was a slight discrepancy in the signatures. I know I've encountered a couple of clients where they had their cheques bounced, went into the branch to sort it and were asked if they were sure they didn't want to see an internal adviser.

In principle, it would be a gross breach of TCF principles to stop a cheque to try to retain the money, but it can be explained away with other reasons.

dunstonh

MarcoM wrote: »

thanks. as an ifa have you ever experienced delays due to stupid banks querying client's cheques and / or payments out of their account into different products?

Yes. A number of times the banks try to intercept the payment typically for their own marketing purposes. I have had both Lloyds and Natwest actually bounce the cheques on false pretences (not drawn in accordance with mandate) and then asking the person to come in. When they went in the person tried to make out the signatures differed or they needed a new form completed but then went on to try and market them with their in-house trash.

MarcoM

i would hope that said customer would do either of:

a) batter the bank manager
b) close the accounts once the transaction is finally authorised.

I cannot believe they would have the cheek to offer fa after blocking someone's cheque for no other reason than marketing purposes.

I dread to think the pressure lottery winners get put under when trying to invest their winnings