IFA fees
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Murmansk
Posts: 929 Forumite
I understand the law changed a few years ago so that IFAs now have to charge a set amount or a percentage, rather than making their money from commissions they get from the products they sell.
My brother has some investments which were arranged through an IFA dating back to the time before the law changed.
He gets a statement every six months and, looking back over those statements, it seems as though they’ve been growing at about 6 to 7% per year overall.
What puzzles me is that the IFA doesn’t seem to ever really get in touch to suggest a meeting to review the investments.
Is it probably the case that because the IFA arranged these investments before the change in the law, he’ll still be getting commission from them and so makes money from doing absolutely nothing for my brother whereas under the current scheme he’d want to get him into the office in order to make some money out of him!!?
My brother has some investments which were arranged through an IFA dating back to the time before the law changed.
He gets a statement every six months and, looking back over those statements, it seems as though they’ve been growing at about 6 to 7% per year overall.
What puzzles me is that the IFA doesn’t seem to ever really get in touch to suggest a meeting to review the investments.
Is it probably the case that because the IFA arranged these investments before the change in the law, he’ll still be getting commission from them and so makes money from doing absolutely nothing for my brother whereas under the current scheme he’d want to get him into the office in order to make some money out of him!!?
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I understand the law changed a few years ago so that IFAs now have to charge a set amount or a percentage, rather than making their money from commissions they get from the products they sell.
January 2013. Only applies to business arranged from that part. Not on business before. However, a commission that may have been payable beyond that date ended for IFAs if it was on UT/OEICs held unwrapped or within an ISA. Only Life funds and pension funds were exempt and that is only until there is a disturbance event (plus most pension and list funds saw a choice of initial or ongoing. It didnt tend to create a difference in charge). edit: direct holdings of UT/OEICs are also exempt for a bit longer.What puzzles me is that the IFA doesn!!!8217;t seem to ever really get in touch to suggest a meeting to review the investments.he!!!8217;ll still be getting commission from them and so makes money from doing absolutely nothing
Why do you think there will still be commission?whereas under the current scheme he!!!8217;d want to get him into the office in order to make some money out of him!!?
Its more likely that the IFA is not earning a thing out of your brother and your brother hasn't requested the IFA do anything and therefore your brother has got exactly what he hasnt paid for.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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