alternative pension investments

dunstonh

Aren't IFAs governed by some sort of protocol covering initial contact with a client?

There are restrictions. However, what typically happens in scams and dodgy dealing is that a non-regulated individual/firm cold calls. They say all the things that the adviser cant say. They then either sell the lead to a genuine firm who doesnt know what has been said or they have an arrangement with a firm just to process the transfer paperwork rather than actually give any advice.

CF30 is just the regulatory permissions that cover advisers (as well as a range of others).

System

mania112 wrote: »

Do you always speak to the same adviser at your bank?

Yes.

He's the manager, and I ask for him by name.
You are not confusing "adviser" with till cashier are you?

cgzz

Thanks Dunstonh. I'll put it another way. What should a genuine IFA employed by a genuine firm do on first contact with an existing client that they have never spoken to before? I am trying to understand if the IFA is "prevented" from trying to sell new products or transfer existing products until they have met the client and established their current situation.

dunstonh

What should a genuine IFA employed by a genuine firm do on first contact with an existing client that they have never spoken to before?

Just identify themselves as working for the company.

I am trying to understand if the IFA is "prevented" from trying to sell new products or transfer existing products until they have met the client and established their current situation.

No they are not because your contract is with the firm, not the member of staff.

cgzz

OK so how does a new IFA know a client's current situation if no-one at the firm has been in contact for say 18 months? Seems to me it would be common courtesy for an IFA to establish a client's current situation before trying to get them to buy or transfer. Surely IFAs are trained as part of their qualifications on how to deal with first contact with a client? Anyone else got an opinion?

jem16

cgzz wrote: »

OK so how does a new IFA know a client's current situation if no-one at the firm has been in contact for say 18 months?

Do you have an ongoing servicing arrangement with the firm or do you just pay for advice as and when needed?

Seems to me it would be common courtesy for an IFA to establish a client's current situation before trying to get them to buy or transfer. Surely IFAs are trained as part of their qualifications on how to deal with first contact with a client? Anyone else got an opinion?

I think it would probably be preferable for a new IFA within the firm to introduce him/herself and get to know you first. The next step would probably be to offer you a review of your investments if this is not something that's being done annually on a servicing arrangement. Presumably that's what is happening here?

I think if you're unhappy with the way the firm is presenting itself you really should look to move to a new firm. Perhaps a smaller firm with less turnover would suit you more?

cgzz

jem16 wrote: »

Do you have an ongoing servicing arrangement with the firm or do you just pay for advice as and when needed?



I think it would probably be preferable for a new IFA within the firm to introduce him/herself and get to know you first. The next step would probably be to offer you a review of your investments if this is not something that's being done annually on a servicing arrangement. Presumably that's what is happening here?

I think if you're unhappy with the way the firm is presenting itself you really should look to move to a new firm. Perhaps a smaller firm with less turnover would suit you more?

There was no annual servicing agreement and that's why I believe the firm told its new IFAs to target existing clients who didn't have the annual agreement. That's also why I want to try and get to the bottom of training, qualifications and FCA directives in terms of how an IFA should deal with a client for the first time and if there are any rules governing a firm. Maybe there aren't any rules?

jem16

cgzz wrote: »

There was no annual servicing agreement and that's why I believe the firm told its new IFAs to target existing clients who didn't have the annual agreement.

They may well have done. However all companies do this unless you tell them that you don't want this to happen - ie opt out of marketing.

That's also why I want to try and get to the bottom of training, qualifications and FCA directives in terms of how an IFA should deal with a client for the first time and if there are any rules governing a firm. Maybe there aren't any rules?

I think you've already been given the answer more than once. You are a client of the firm, not a specific IFA.

Either tell them that you don't like this form of contact and will contact them if you want their advice or move.

dunstonh

There was no annual servicing agreement and that's why I believe the firm told its new IFAs to target existing clients who didn't have the annual agreement.

Quite possible.

That's also why I want to try and get to the bottom of training, qualifications and FCA directives in terms of how an IFA should deal with a client for the first time and if there are any rules governing a firm. Maybe there aren't any rules?

Same answer as already given multiple times. Your relationship is with the firm. Not the individual staff it employs.

cgzz

In post 22 Dunstonh said "there are restrictions". What are the restrictions - I can't see this being answered anywhere so here is the answer from the FCA website:-


One-minute guide - Cold calling

Published: 22/07/2013
Cold calling can expose consumers to high pressure sales tactics which mean they can end up with an inappropriate or over-expensive product or service.
Our investment and mortgage financial promotion rules therefore ban cold calling (which is called unsolicited real-time promotions in our Handbook and legislation) unless certain conditions are met.
How do we define cold calling?

Cold calling is where a financial promotion is made during any dealings with a customer which the customer did not begin.

However customers can be approached if they expressly request it. Failing to tick a box to say that they do not want to be contacted, or relying on standard terms that you may contact them again is not sufficient to allow you to cold call a customer.
What are the specific rules for investment business?

Investment rules allow for three scenarios where cold calls could be made:

• the promotion is to an existing customer who anticipates receiving a cold call;
• the promotion relates to packaged products that do not contain higher volatility funds, or to life policies not connected to higher volatility funds; or
• the promotion only relates to readily realisable securities (but not warrants) or generally marketable non-geared packaged products.

Apart from the type of product being promoted, we also have rules about how the call must be conducted. Regardless of whether a call is a cold call or expected by the customer, the caller must:

• only make contact at an appropriate time of day;
• identify themselves and the firm they represent at the start and make clear why they are calling;
• ask whether the client would like to continue or terminate the call, ending the call if asked to do so; and
• give a contact point to any client who they arrange an appointment with.

So that answers my original query. Regardless of who or what my relationship is with, the IFA should not have cold called looking to make pension transfers.