IFA managed SIPP vs DIY

Vintage61

I currently have a SIPP with a platform provider that can only be managed by an IFA. I wasn't aware that I wouldn't be able to manage my investments independently when I agreed on the provider even though I specifically requested this when I approached the IFA. Has anyone managed to extricate themselves from a serviced account and what are your experiences with providers who allow customers to manage their own affairs? I have a S&S ISA with HL who I've been very happy with.

Aegis

Do you have an original recommendation letter in which the requirement for you to be able to manage your own investments is stated? If so, you can always go back to the IFA and point out that they haven't done what they said they would.

What platform are you with?

dunstonh

I have a S&S ISA with HL who I've been very happy with.

One of the big negatives of HL, other than their cost, is that they do not link accounts for charging purposes. e.g. if you have an ISA or £150k and a SIPP of £150k, they dont view you as having £300k. Unlike most platforms that do (and lower their charge accordingly).

Its easy to move your SIPP from an IFA only platform to a DIY platform. Just check for charges.

Vintage61

Aegis wrote: »

Do you have an original recommendation letter in which the requirement for you to be able to manage your own investments is stated? If so, you can always go back to the IFA and point out that they haven't done what they said they would.

What platform are you with?

Unfortunately, my comments re independent management were all verbal at the initial consultation. I thought I'd been clear, but his main focus seemed to be signing me up as a "serviced" client with ongoing commission. At no point was it clearly explained to me that the platform he had chosen can only be managed via an IFA.

BritPop

It sounds like you've answered part of your own question. Your relationship with your IFA should be one of trust. You're paying (usually a percentage of your investment) for them to manage your investment. If the relationship has broken down or you've lost faith then that's not a good position to be in.

Personally, I like HL. Their fees are higher than others, but I have found their service and the ease of use of their website to be a good feature.

ffacoffipawb

BritPop wrote: »

Personally, I like HL. Their fees are higher than others, but I have found their service and the ease of use of their website to be a good feature.

Agreed. I moved my ISA from Selftrade to HL and the deal is very good (Investment Trusts only, not using funds, co annual fee capped at a reasonable £45). I was fee exempt at Selftrade but happy to pay £45 a year for the better functionaloity that HL offers.

They are too expensive for a SIPP which I moved from HL to Youinvest in March last year. Investment Trusts again, but Youinvest charge £100 p.a. compared with HL's £200 p.a. I already had two SIPPs but merged them into the Youinvest one.

I would have moved my ISA to Youinvest but decided on a separate provider for safety purposes.

zagfles

dunstonh wrote: »

One of the big negatives of HL, other than their cost, is that they do not link accounts for charging purposes. e.g. if you have an ISA or £150k and a SIPP of £150k, they dont view you as having £300k. Unlike most platforms that do (and lower their charge accordingly).

Its easy to move your SIPP from an IFA only platform to a DIY platform. Just check for charges.

Yes, although other platforms have a separate extra charge for the SIPP wrapper. And HL are willing to negotiate charges for larger amounts. Charges depend on many different factors, see Snowman's spreadsheet to compare:

http://forums.moneysavingexpert.com/showpost.php?p=64540489&postcount=15

SeniorSam

I have been happy with HL with my SIPP for many years, although I do not ask for their help with anything. I manage all investment myself and use funds which I selected myself and have proved to produce excellent results.