Financial Advisers.

Libra1975

Not sure where to put this, so apologies if you think this is the wrong place.

About 4 years ago we got a financial adviser to put some of our affairs in order, which he did and got commission from those products. He then suggested we pay a monthly fee to his company as soon products wouldn't be commission based so his company would be changing to fee paying. This way we saved up money monthly to pay for his services when we needed them. So for the past 3 years we have been paying X amount to them.

Thing is we haven't needed them. They have sent a letter once a year suggesting we meet up but our finances haven't changed and we probably won't be in the position to put any money anywhere else for several years. I have looked at the docs we were sent and can't find anything to say what would happen to the money if we didn't use their services.

I have rung and am waiting to hear back from them, but I am wondering if this is usual behaviour from a financial adviser company? If we say look we are not going to use you are we entitled to our money back?

latecomer

So you've ignored them for 3 years despite them prompting you and think you are due a refund?

Edit: Actually having re-read the post I can see what you are getting at but still think that having ignore them for 3 years means its pretty unlikely they will entertain a refund given its been your choice not to use their services.

Lokolo

I don't think they will refund but you can ask them to stop ongoing service if you don't want it.

marathonic

If your investments had tanked, you'd no doubt be looking to lodge a mis-selling claim. I'd imagine that any company accepting that risk needs to be paid for doing so - regardless of whether you visited their office or not for further advice.

IronWolf

The money you invested is yours and you can get it back whenever you wish as long as it is invested in liquid assets (i.e. not property or similar).

It is your right to stop paying them at any time, which is reasonable if you don't want to use their services. The could be receiving trail commission from your investments as well.

Libra1975

But we haven't needed their services, we have no money to do anything with. The whole point was to save up until we needed their services but we just can't see that happening and I can't see them sending one letter a year has justified the amount we have paid out.
We have stopped the payment.

Libra1975

Sorry posted before saw IronWolf reply. This isn't invested money, this was money we gave in advance for payment of future services. Future services we just haven't used or are going to.

jem16

Libra1975 wrote: »

But we haven't needed their services, we have no money to do anything with. The whole point was to save up until we needed their services but we just can't see that happening and I can't see them sending one letter a year has justified the amount we have paid out.
We have stopped the payment.

I suppose it would depend on how the agreement was worded.

Normally you would either go with a transactional arrangement (ie pay when you actually need the service) or a servicing agreement (ie paying a monthly or annual fee or trail commission) which would see an annual review, rebalance, Bed&ISA etc.

I haven't heard of paying in case you need their services at some point though.

marathonic

Libra1975 wrote: »

I can't see them sending one letter a year has justified the amount we have paid out.
We have stopped the payment.

Try to find the original documentation to see how the method of payment for their services is worded and what it entitles you to. It probably entitles you to an annual review which means that, by sending the letter requesting you to make an appointment; they have kept to their side of the bargain.

In the same way, I can't request a refund from Sky if I happen to avoid watching TV for a year. It'd be my own fault for not cancelling in advance.

Onawingandaprayer

Sounds like you were paying them a regular amount so that if you needed them, you would be covered. A bit like car insurance.

I don't think they give any money back if you don't make a claim...

marathonic

For what it's worth, and I mean this as advice as opposed to taking a cheap shot at you or anything, I think that someone that forgets about such a payment for 3 years would be well adviced to retain the services of a Financial Advisor.

Your financial circumstances may not change over the years - but the financial products available to you and the cost of those products are continuously changing.