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FCA platform paper due in tomorrow
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it will become a nightmare to compare anything and also to move platforms.
I've never found moving platforms difficult. As to comparing between platforms, this has always been tricky and I expect it to continue to be so.
My crystal ball suggests that in six months or so all of the gadget family SIPPs and ISAs may well be with BestInvest because I expect their flat rate "eat all you want" for trackers and equities to continue, but let's wait and see.
I'm not moving anything else until everyone has played their hands.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
from what they say, i wonder if HL are hoping to get access to cheaper fund classes than other platforms. though they don't explicitly say that. dunston thinks this is unlikely, based on what's happened with IFA platforms. so do the smallest and biggest IFA platforms have access to exactly the same funds and unit classes?
I have read in the past they they hoped to get fund houses to give them a different share class. Problem is that despite their size, they are not the biggest. If they get it, then the bigger fund platforms will no doubt be looking for it too. There is no indication at the moment that is happening.
Currently, in most cases you have retail, no-trail and clean. If we end up with multiple clean classes, you wont know what you are comparing. Fund houses wont issue share classes willy nilly either. That comes at a cost.
Most of the IFA platforms have moved to full unbundled where any commission is rebated or clean share classes or used (or commonly both versions available on the same platform). In some cases, using retail with rebates is cheaper than using clean.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
gadgetmind wrote: »I've never found moving platforms difficult.
It's not difficult but depending on the rules of the provider you are leaving it wasn't possible to move "in specie" and more often than not you had to go into cash and then move.
Now that re-registration is possible, multiple share classes may get in the way again.0 -
Most of the IFA platforms have moved to full unbundled where any commission is rebated or clean share classes.
So how do IFAs now get their [STRIKE]pound of [/STRIKE]servicing fees?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
more often than not you had to go into cash and then move.
As part of simplification, optimisation, and moving towards an IFA free existence, I have moved a lot of pensions and ISAs over the last few years. The vast majority were done in-specie and it was only those from the most opaque "advisor only" platforms that required disinvestment and took a long time.
We've made great progress over the years towards making investing easier and more cost effective for the general public but still have a long way to go.
Disintermediation works for everyone except the middlemen who are removed from the loop.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »So how do IFAs now get their [STRIKE]pound of [/STRIKE]servicing fees?
It is charged explicitly. So, you have the fund charged cleanly plus the platform charge plus the adviser charge.
The DIY platforms "should" end up with platform charge plus investment charge.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
plus the platform charge
Are these now fixed fee or percentage of pot on advisor-friendly platforms?plus the adviser charge.
I guess my question is the same here. I massively reduced my annual fees by moving from paying 1.5% to 2.5% pa in fees to paying deeply sub 0.5% pa plus a couple of hundred quid (across all pots) in platform fees.
This didn't seem to be possible in the past when using IFAs (at least not with those I encountered IRL) but perhaps it will be in future.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
But can be expensive depending who you're moving from. If you want to escape from Hargreaves Lansdown and transfer funds in specie it's £30 per fund, so over £300 for a typical portfolio.gadgetmind wrote: »I've never found moving platforms difficult.
The most curious bit is 'Payments from fund managers to platforms for advertising will also be permitted – although the regulator said it would consider banning these if it found evidence of “abuse”'. (http://www.ft.com/cms/s/0/3b928894-ae4b-11e2-bdfd-00144feabdc0.html#axzz2RaeIaHGT )
If that comes about it would have the same problem of lack of transparency as the current system.
From the FCA policy document:
Payments to platforms and consumers
1.10
We are proceeding with our core proposal that requires a platform service to be paid for
by a platform charge disclosed to, and agreed by, the consumer. However, some platforms
suggested a number of charges that could still appropriately be taken from firms, including
product providers. We agree with a number of these so have amended our rules to allow:
•
payments for the work incurred correcting a pricing error by the product provider;
•
payments for the work incurred in dealing with a corporate action by the product provider;
•
payments for the work incurred in providing the product provider with management
information regarding the consumers who are invested in the product; and
•
payments in relation to advertising products on the platform.
Bizarre.
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Do I take it that retail is the full monty, up front fee and trail. both of which can be rebated?Currently, in most cases you have retail, no-trail and clean. If we end up with multiple clean classes, you wont know what you are comparing. Fund houses wont issue share classes willy nilly either. That comes at a cost.
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How do "no trail" and "clean" differ to each other?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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