IFA changing company...

secondincometrader

Hi, I'm hoping someone can help. I've received a letter from my IFA saying that he has "moved to an associated financial advisory firm xxxx, which is an appointed representative of yyyyy (formally zzzzz)" where zzzz is the IFA/company I originally signed up with. He's asking me to provide written confirmation that I'm happy for my pension pot to move with him, and that unless I do so soon he may be unable to manage my pension. This raises a number of questions:

- should I be concerned with this change, or is this quite typical?

- if I don't sign what happens

- I've been considering moving from this IFA anyway (I felt pressured to sign up with him for the pension in the first place), but I'm not sure if there is any exit charge, would this be an opportunity for me to move away at no charge?

He's arranged to come round and explain, but I'd like to get a second opinion from this forum please.

Many thanks.

Steve.

dunstonh

- should I be concerned with this change, or is this quite typical?

For any adviser that is not a director/partner/owner, the risk of them moving to another company exists. No different to any other occupation.

Some IFA firms, such as those that provide services to affinity groups/unions etc, have a high number of trainees and those starting out. They can be horrible jobs with lots of driving and horrendous hours. So, you expect advisers to leave those jobs pretty quickly.

An employee or attached adviser may feel they want to start their own firm or become a director/partner with another firm. Rather than just be an employee.

So, there can be perfectly valid reasons.

The mention of appointed representative could be a concern. It suggests they are a network member (in a small number of cases it may not be). Most networks have dropped their IFA status to become FA.

- if I don't sign what happens

The existing firm will allocate someone to you.

- I've been considering moving from this IFA anyway (I felt pressured to sign up with him for the pension in the first place), but I'm not sure if there is any exit charge, would this be an opportunity for me to move away at no charge?

You are free to move IFA as you wish without charge. However, it is always worth checking the contract to see if there was any short term tie in (can be in the early 12-24 months).

LHW99

He's arranged to come round and explain

Personally I always prefer to see a professional person (IFA / solicitor etc) in their workplace. When they are in your own home there is a tendency to feel pressured to agree to things, even if only to terminate the discussions.