Ongoing IFA or not

kidmugsy

dunstonh wrote: »

I did a rebalance today. Over 100 pages of documents required for the file.

It sounds as if Regulation has become a parasite that will kill the host.

dunstonh

Rebalancing is simple, it's just a matter of percentages.

As I have said before, its not the processing that is time consuming. Its preparation (research and audit trail).

And you contradict yourself, early in this thread you said rebalancing wasn't necessary every year!

No I didnt. Rebalancing will depend on the investments utilised. The OP holds a multi-asset fund which does not require rebalancing. So, there is no need for an annual review with a basic product with basic investments with no change of circumstances and not a large value. If there were more advanced investment options, then they should be rebalanced on an annual basis.

Fund research, well that takes some effort I guess, visiting all those fund managers. Interviewing company directors, reading the FT cover to cover, checking the latest news on multiple websites. It must be very time consuming, but there again, it wouldn't be hard to imagine the same fund being suitable for many customers depending on their risk profile and objectives. So surely you would share the cost. It's a bit like training people, a course is usually charged by course and not by attendees.

Why would an IFA interview company directors?

Anyway, a lot of that data an information is available more easily but you have to pay to get it. The data suppliers do not do the individual research. That is required by the adviser as research needs to be personalised to fit the individual and cannot be a one-size-fits-all. The research needs to be run for each and every client every time even if the outcome is the same as the one you did earlier for someone else.

And a 100 page audit trail. Ridiculous, no one will ever read it, the client certainly won't.

It only gets read if the file is checked or a complaint comes in. The vast majority of it gathers virtual dust. most of it the client never sees as its background to the support the recommendation.

And to finish, let's just consider another part of the financial world. Banking! They just awarded themselves a £5,000,000,000, that's right £5bn bonus. On an industry that consistently loses billions of pounds a year!

Banking is hundreds of years old (in a form recognised today). What evidence do you have to support your view that they consistently lose that amount over the hundreds of years?

all very interesting, but I don't buy it.

But you are never going to. No matter what is explained.