A tale of 4 IFA's... (subtitle - why is it so hard?)

bigadaj

There is something odd here. We frequently see issues raised whereby a client wants an ifa to act ina particular manner, but even if this is acknowledged as being against his interests the ifa would refuse to process against fsa guidance.

In this case we apparently, as we only have part of one side of the story, have an ifa not only working against te clients interest, obviously made to look worse with hindsight, and apparently no documentation to support something which would be hard to justify in any case.

What define would he ifa practically have in this case?

fairleads

So we've all had our say but, based upon the minimal info provided by the op, I can't see anything posted here that leads me to query IFA 4s actions. For example the op may be close to retirement, in which case cash would be entirely appropriate.

jem16

fairleads wrote: »

I can't see anything posted here that leads me to query IFA 4s actions.

Try looking at OP's other posts.

waccamole wrote: »

Hi

Back in October I transferred a couple of personal pensions and a stocks & shares ISA to the Aviva platform on the advice of my new IFA.

I was surprised to find when I checked online recently that all of the funds were invested in cash and had been since they were transferred over during October and November.

When I asked my IFA why, he said that in October he thought that the market was high so decided not to go straight back in. In fact the markets have continued to rise. He thinks a correction is due so is waiting before moving back in.

When I queried why I was in cash I didn't even realise that the markets had risen - I thought it was a bad idea anyway not realising how bad!

I could understand if I'd come to him with a cash lump sum to invest that it may be best to drip feed the money in to shares. But, I was already invested so expected to remain invested. I didn't explicitly say that to him, I thought that was what he would automatically do (my mistake). Most of what I've read says that trying to time the markets is a bad idea and that if you're in for the long term then you take the rough with the smooth.

It took me long enough to find an IFA (that's a whole other story) but this episode has made me wonder if I've chosen wisely.

Two questions:

1. Should I be concerned about his approach?
2. Should I tell him to start drip feeding money back into the market despite his opinion that it is currently over valued?

Thanks for your thoughts

W

Something has gone wrong somewhere.

fairleads wrote: »

For example the op may be close to retirement, in which case cash would be entirely appropriate.

Yes I suppose it is possible that someone with 3 kids and worried about losing Child Benefit may be close to retirement.

waccamole

fairleads wrote: »

So we've all had our say but, based upon the minimal info provided by the op, I can't see anything posted here that leads me to query IFA 4s actions. For example the op may be close to retirement, in which case cash would be entirely appropriate.

13 years to target retirement date.

Looking at the both of us, we have some final salary provision, my partner is a current member of a blue chip company DC scheme, I am a deferred member of the same scheme and I've just gone back to work and joined my company stakeholder scheme - all fairly solid but unexciting investment options.

So, with a good relatively safe base we are looking to be a bit more adventurous with the money that has been moved to the Aviva platform which represents about 12% of our combined total fund value (using transfer values for the DB elements).

I've not heard back from the IFA yet about the suitability report and when I do I'll post in my other thread that's more specifically about being in cash since Oct/Nov without my knowledge or agreement.

The point of this thread was how hard I've found it to find someone I trust to give me and my partner pensions advice and when I thought I had getting an upleasant surprise.

I don't really have time to DIY - both work full time, three primary school aged children. I suppose I may end up going down the route of choosing my own investments but with pensions it's the stuff like product knowledge, technical knowledge, tax efficiency, the best way of organising things that I'm looking for help with.

atush

redbuzzard wrote: »

Does anybody here not actually think that IFA4 just didn't get around to doing anything and was bluffing about the reason?

Even allowing that he might have thought equities were at a peak, he could have discussed that with the client or suggested phasing the purchases. And there are other investments besides equities and cash.

Yes this is what I thought. He would have to had discussed this with the client, and agreed the cash only strategy. I feel this was a 'bad day' or Friday' situation where the FA (I still can't believe they are an IFA did not do the work agreed, and forgot about it:?

But Fairleads, who doesn't use IFAs at all, thinks they should both be capable of, and entitled to, predict markets. I say, they can try it only if agreed by the client, and even if so- look out for complaints

GhIFA

atush wrote: »

Yes this is what I thought. He would have to had discussed this with the client, and agreed the cash only strategy. I feel this was a 'bad day' or Friday' situation where the FA (I still can't believe they are an IFA did not do the work agreed, and forgot about it:?

But Fairleads, who doesn't use IFAs at all, thinks they should both be capable of, and entitled to, predict markets. I say, they can try it only if agreed by the client, and even if so- look out for complaints

And don't forget "duty bound" atush! I think the general over-riding view is that something is not right, and needs to be queried further.

I'm pretty much discounting the only opposing view to that on the basis that, despite having it outlined many times, that poster doesn't seem to have any understanding of the regulatory requirements at all. They also are yet to point out any of the "false premises" that absolutely no-one else has spotted.

Lewey_78

Sounds very shoddy to me. I'm amazed these advisers still have clients!

olly300

jem16 wrote: »

Yes I suppose it is possible that someone with 3 kids and worried about losing Child Benefit may be close to retirement.

You and other narrow minded people like you p*ss me off.

There are some men close to retirement or actually retired who are in that situation.

I suggest you actually ask people instead of making presumptions about their families.

jem16

olly300 wrote: »

There are some men close to retirement or actually retired who are in that situation.

I suggest you actually ask people instead of making presumptions about their families.

Of course there is, hence why I used a smilie. Perhaps you missed that in your rush to be presumptious/abusive.

atush

Or maybe we should ask wife No1 if she is happy?

Many men in retirement or near to with small children are on their second or even third family/wives. And that has repercussions for the children of previous marriages (or even the wives if the man in question should die before maintence is paid in full).

We were 'old' having our children, esp the twins who arrived when I was in my mid 30's and OH was in his 40s. And ours are at Uni now when we should be thinking of early retirement.

So anyone older than 50s having kids should have already made the savings needed for retirement or having another family. If you can't afford kids, you should not have them.