Is IFA quote reasonable?

DairyQueen

I have requesting a quote for a pension review from a local IFA. We are seeking guidance on the following:

1) How/when best to access pension income to optimise tax.
2) Where to consolidate OH's 3 x DC schemes.
3) Investment guidance on 2).

Our situation isn't straightforward as OH has a DB, a SIPP (managed by me), an S32 plus the 3 x DCs. I have SIPPs plus a small DC. OH will receive variable income through self-employment (limited company) until he retires. OH's retirement date is not fixed but, ideally, will be in 3.5 years when he turns 65. If the employment income dries up then he will have to retire sooner.

OH's DCs have a combined value of approx £300k. Our SIPPs have a combined value of around £350k. Guaranteed income will be OH's DB and S32, plus 2x SPs.

We have been quoted £4200. I have yet to check whether that figure is subject to VAT.

We do not require ongoing investment management. This is a one-off exercise.

I would appreciate views on whether the quoted fee is reasonable. Thanks in advance.

dunstonh

The S32 may need increased regulatory permissions (if there is GMP).

VAT should not be charged on the fee (where the intention is to buy a financial product, VAT is not applicable). However, if the firm segments their charges into specific tasks, then VAT could apply to some of those tasks.

If the S32 has GMP then the fee is ballpark. If it doesn't have GMP then its a bit higher than ballpark.

We do not require ongoing investment management. This is a one-off exercise.

That will likely see the recommendation compromised somewhat. WIthout ongoing servicing, the adviser is unlikely to recommend investments that require ongoing servicing. Also, it probably makes a higher initial fee more likely.

cloud_dog

Dunstonh, I don't think DQ is considering / proposing to move or transfer the S32 plan, simply it needs to form part of the overall consideration when looking at the profile for the 3 x DC plans.

DairyQueen

cloud_dog wrote: »

I don't think DQ is considering / proposing to move or transfer the S32 plan.

Spot-on. The GMP is too valuable.

Thanks for the replies. I had anticipated that the fee may reflect the one-off nature of the required advice. Wasn't sure about the VAT situation.

Having read some threads here I don't think the fee quote is excessive so we will probably go with him.