Financial Advisor meeting

Poodl

We have an ongoing IFA who earns plenty from our pensions and other investments. He persuaded us to top up our Share ISAs x 2 to this year's 30k limit. We understood that this would cost .75% annually as last year but have just received a letter stating that there is a flat fee of 3% too (deducted from the investment). At our last meeting he kept saying " It won't cost any extra".
We have contacted him but he is sticking to his guns. Any comments?

Herbalus

Poodl wrote: »

We have an ongoing IFA who earns plenty from our pensions and other investments. He persuaded us to top up our Share ISAs x 2 to this year's 30k limit. We understood that this would cost .75% annually as last year but have just received a letter stating that there is a flat fee of 3% too (deducted from the investment). At our last meeting he kept saying " It won't cost any extra".
We have contacted him but he is sticking to his guns. Any comments?

That's probably in the terms of business that you signed up to (is it?), and probably isn't too out of line of what other firms charge.

But I'm wary if you're insinuating he got you to invest £30k just to get the 3% - either you should find an adviser who looks after your needs, or you should change your phrasing so it better reflects a (more likely?) scenario where you had spare capital and investing in an ISA is more tax efficient than not. Presumably your IFA knows your circumstances and should be advising on where to invest (pension contributions, ISAs etc) depending on that.

dunstonh

Poodl wrote: »

We have an ongoing IFA who earns plenty from our pensions and other investments. He persuaded us to top up our Share ISAs x 2 to this year's 30k limit. We understood that this would cost .75% annually as last year but have just received a letter stating that there is a flat fee of 3% too (deducted from the investment). At our last meeting he kept saying " It won't cost any extra".
We have contacted him but he is sticking to his guns. Any comments?

What does it say on the fee agreement you signed?

Are you paying initial and ongoing fees to the adviser or just initial?

There are multiple models. For example, when someone has over £100k with us and is on an ongoing servicing model, we don't charge for increments as it falls under the ongoing service. Whereas, if its under £100k, we will (exceptions apply). It all comes down to what you agree.