Halifax - bad advice?

MattR1972

Hi,
I have been helping my partner with her Halifax Personal Investment Plan (PIP), which she has held for around 13 years, all held in an under performing "Cautious Investment Fund". After what seems like months of reading and research, she is paying around 2.5% in annual charges and we are concerned with the lack of diversity and that she has large sums (well over the £85k guarantee).

So, she has sold some of this investment, the proceeds will go to an AJ Bell ISA (£20k) and an AJ Bell share account, some will go to a SIPP. This alone will cut charges to 0.25% (plus the investment charges - mostly ETFs).

The remaining Halifax fund, we asked to switch, spreading the risk geographically (10 different funds), however, one fund was not available (due to Halifax policy - customers can only invest 100% into this fund). So here is my question, over the phone, a Halifax (Scottish Widows) adviser informed us of this, and being away from my PC, I asked whether that £10k could be held as cash in the PIP awaiting instruction - when we can look at alternatives.
The adviser (not an adviser I guess) thought I meant - put the £10k in their "Money Fund", I said "no - cash", he told us it was similar than holding cash - so we said go ahead.

When we got home, I looked at the fund - it is rotten, the charges mean that it performs at minus 2%, nearly as bad as inflation!

I haven't complained to Halifax yet but could this be bad advice?

Thanks

dunstonh

and we are concerned with the lack of diversity

It is a multi-asset fund. So, diversity is fine.

and that she has large sums (well over the £85k guarantee).

Its not a deposit. So, doesnt have the deposit protection scheme. It has the investment FSCS protection scheme.

(plus the investment charges - mostly ETFs).

Which means there is no FSCS protection at all. ETFs are direct assets. So, moving it from an FSCS protected investment fund to having no FSCS protection at all on the basis of thinking £85k protection is not enough seems a bit strange.

The remaining Halifax fund, we asked to switch, spreading the risk geographically (10 different funds), however, one fund was not available (due to Halifax policy - customers can only invest 100% into this fund).

Are you sure that would spread the risk or would it increase the risk by not having any rebalancing, professional allocations and probably incomplete diversification?

So here is my question, over the phone, a Halifax (Scottish Widows) adviser informed us of this, and being away from my PC, I asked whether that £10k could be held as cash in the PIP awaiting instruction - when we can look at alternatives.
The adviser (not an adviser I guess) thought I meant - put the £10k in their "Money Fund", I said "no - cash", he told us it was similar than holding cash - so we said go ahead.

They dont have advisers. They also dont have a cash account.

I haven't complained to Halifax yet but could this be bad advice?

No. You got no advice. So, therefore you cant have bad advice.

You got a money market fund that is aimed for short term holdings. Exactly what you asked for.