Independent Financial Advice at Norwich and Beterborough BS

sjw6

Has anyone had any experience of using the N and P BS Ind Financial Advice Service?

dunstonh

It's salesforce based (targets, league tables etc).

The salesforce business model is not good when you want quality advice. It doesnt matter if its tied or independent. Plus, dont expect long term servicing. With the FSA's Retail distribution review bringing in a higher standard for IFAs from 2009 (with a probable 5 year period to allow firms to adapt), I cannot see how a bank salesforce can satisfy the higher qualifications and standards that will be required of IFAs. I see them dropping back to multi-tie.

I don't know what their remuneration level is but most banks have their advisers earning around 20-30k. That is very low for an IFA and you arent going to find many quality IFAs only wanting just that. You are going to pick up the dregs or inexperienced with that wage level.

Other banks have tried IFA rather than tied and have failed. Some were IFA in name but panel in reality. They didnt kit their advisers out with enough of the research software and tools to allow better than best advice. You also are extremely unlikely to get discounts with salesforce advisers. Their own remuneration is unlikely to allow it.

sjw6

Hi and thansk for taking the trouble to reply. I have already had a free appoitnment with the N and P guy who was very pleasant and non pushy. He has now gone off with my details and will come back with some ideas. I have chosen the commission approach rather than fee paying (and I have to say the fees sounded astromonical) which means I do not have to pay anything unless I act on his advice. I can go away with his ideas, and reflect and ponder without obligation, so I thought I would have nothign to lose. However, becuase I havent a clue about investiments I am beginning to realise I wont have much to gain either as I wont know if his advice is good or not. Is there any way a complete notive can tell what is good avice and what is not? This would apoply to whoever I went to.

dunstonh

I have already had a free appoitnment with the N and P guy who was very pleasant and non pushy

Most are pleasant and non pushy.

and I have to say the fees sounded astromonical)

Its a building society so they would be. Banks/building societies wont (or rarely) rebate or reduce commissions. Yet most IFAs do.

Also, with most investments nowadays, the commission is a fee as the amount of the commission is deducted from your investment. FSA's TCF rules do not allow fees to equal commission. So, for larger investments, fee option is virtually always cheaper. Customer agreed remuneration is more common nowadays but not with bank advisers. (agree a fee and have the commission pay it with any surplus being rebated or used to lower charges)

Is there any way a complete notive can tell what is good avice and what is not?

Ask to see the research. Research is best if it uses indpendent sources and not provider's own data.

Depending on the type of product recommended, the research will vary. However, typically you would be looking to be told what investment strategy is being used. i.e. asset allocation, sector allocation, High yield portfolio etc. The recommended funds should total at least 5 but the larger the amount the more it is (small investments of less than 20k make it hard to spread round optimally).

So, if you get no research (or poor quality research) and/or a single fund recommendation then that should be a warning sign. You should also enquire about further servicing. Such as annual portfolio rebalancing and reports from the adviser. I would expect a bank to be poor on this as they suffer high turnover and banks dont pay the adviser for servicing (even if the product pays it).

As a warning, I have recently put in two complaints about N&P advice which was awful. In both cases they recommended investment bonds for small investments without using ISAs first or unit trusts. Neither case was suited for an invesmtent bond. Both were put in a balanced managed fund which is lazy investing too. They are prone to that from my experience.

djbd1973

dunstonh wrote: »

Ask to see the research. Research is best if it uses indpendent sources and not provider's own data.

Depending on the type of product recommended, the research will vary. However, typically you would be looking to be told what investment strategy is being used. i.e. asset allocation, sector allocation, High yield portfolio etc. The recommended funds should total at least 5 but the larger the amount the more it is (small investments of less than 20k make it hard to spread round optimally).

So, if you get no research (or poor quality research) and/or a single fund recommendation then that should be a warning sign. You should also enquire about further servicing. Such as annual portfolio rebalancing and reports from the adviser. I would expect a bank to be poor on this as they suffer high turnover and banks dont pay the adviser for servicing (even if the product pays it).

Your pointers here are of help to me Dunstonh so thanks for posting (as often as you do). I am seeing an IFA tomorrow and I've asked him for some options for transferring a current S&S ISA into a better option and in my initial questions I had forgotten to ask him about further servicing so I will now put it on my checklist. Thanks