are these fees excessive?

Noqlu

dunstonh. Thank you for taking the trouble to explain, although I am still far from convinced that the fees are justified. What you spell out are overheads which always comprise part of charges but not enough to justify this very high fee. Similarly with the risk profile, this is a simple transfer between two well established companies, very little risk as far as I can see.
I have decided that I am not going to pay these fees. I will explain to my IFA that unless he is prepared to lower them he has lost a client.

dmelife

I wonder if a solicitor quoted you £2k to sort this for you and take on an indefinite liability, whether you would be so quick to query the cost. You haven’t listened to dunstonh and clearly have no idea what an IFA does. Good luck sorting it on your own.

dunstonh

What you spell out are overheads which always comprise part of charges but not enough to justify this very high fee.

Its not a high fee. It is low.

Similarly with the risk profile, this is a simple transfer between two well established companies, very little risk as far as I can see.

You may wish to offer your opinion to the FCA as they have a very different view to you.

I will explain to my IFA that unless he is prepared to lower them he has lost a client.

Quite possibly a blessing in disguise for that IFA.

Thrugelmir

Noqlu wrote: »

What you spell out are overheads which always comprise part of charges but not enough to justify this very high fee.

Like any business. Not every customer generates income. Yet both fixed and variable overheads need to paid for. When looking upwards from a micro level people often underestimate costs significantly.

Noqlu

I am reminded of what happened when my husband died. I asked three solicitors to give me a quote to deal with probate. Two quoted an hourly rate plus a percentage of the whole estate. The third whose firm deals almost exclusively with wills and probate quoted an hourly rate only. When I asked him why he didn't charge a percentage of the estate value, he said he thought it unethical.
I am prepared to pay for the work but if my fund was worth £300,000 instead of £200,000 where is the additional work? where the additional risk? if it was £100,000 is there less paperwork? I don't think so.
Charge for the work done simple rule!!!

dunstonh

I am prepared to pay for the work but if my fund was worth £300,000 instead of £200,000 where is the additional work? where the additional risk? if it was £100,000 is there less paperwork? I don't think so.

Yes there is less work and risk with a smaller fund size.

Many IFA firms tier their charges or have a cap and collar.

Charge for the work done simple rule!!!

They have told their charge. You dont like it so go elsewhere. Perhaps check out St James Place with their 5% charge.

kidmugsy

Noqlu wrote: »

am I missing something what costs?

You are missing any experience of running a business, and you lack the imagination to infer what's involved.

But if my guess is wrong and you have run a business then I'd think you're just being dim.

Noqlu

No need to be rude Kid Mugsy. Be a grown up and have a civilised exchange.

I did run a business and I did then sell it for a nice profit. It was profitable because I
watched the costs. In business I expected to get what I was paying for, not what some greedy 'professional' thought he/she could squeeze out of me.

This thread is now closed as far as I am concerned.

fred246

It's disgusting the greedy parasites try to charge £2K for filling in a form and giving you a standard information leaflet. Even worse is them trying to defend it. It's much better just to do everything yourself. If you don't understand a question read round the subject until you do. Take control of your own affairs. It's much easier in the long run.

Alexland

My view is the proposed charges look reasonable for the pension size and I doubt you would get that scope of work done by a professional much cheaper by shopping around.

Sure if this is a DC scheme you could go DIY but do you have a high enough interest in this area to develop the skills, knowledge and understanding required? Or would you make a hash of it and end up poorer?

Alex