Discussing Pension with Financial Advisor

Fun_in_the_sun

My brother in law has two small pensions due in April & June 2019. He is unsure what to do. His daughter has made an appointment to meet with a financial advisor to discuss his options. No problem with that is there?Except, she has made the appointment for next week when him and his wife will be away. So, their daughter will be discussing his pension finances with an advisor - in his absence. My question is: Is this ethical? Should a financial advisor discuss someone's finances with a family member without them being present. I am concerned.

MallyGirl

I am sure that they won't. Plus he should be talking to an Independent Financial Advisor - the I in IFA is very important

Dox

I don't mean this to sound rude (and it undoubtedly will), but it's really none of your business, is it? If your brother in law is happy for his daughter to discuss matters on his behalf and has given his written authority to do so, then he clearly isn't bothered. If he hasn't given consent, the adviser won't (or certainly shouldn't) be giving personalised advice.

dunstonh

His daughter has made an appointment to meet with a financial advisor to discuss his options.

FA or IFA? It makes a big difference.

Except, she has made the appointment for next week when him and his wife will be away. So, their daughter will be discussing his pension finances with an advisor - in his absence. My question is: Is this ethical?

Nothing gets done in the first meeting. Barely any advice either. Its a meet and greet discussing concepts and ideas and seeing is there is a basis for the person to actually need the services of an adviser and for the potential client to get to know a little about the adviser.

Is this ethical? Should a financial advisor discuss someone's finances with a family member without them being present. I am concerned.

Yes. It is inevitable that a husband and wife have shared finances. So, a discussion will have to consider joint affairs. However, often one party is the driving force and leaves everything to the other. Where that ist he case the less interested party will often only join in at certain stages and not the early discussions.

If the spouse is active in the decision making and drives the household finances then it is important for them to be there. Without them its pointless.

Also, it is very common for children to be active in supporting the parent. We have multiple clients who we pass fears or concerns onto about the parents decisions or where getting the children involved can help the situation. Data protection prevents specifics initially but it doesnt prevent asking the children to become involved.

Fun_in_the_sun

Yes, you do sound rude but it's a perfectly reasonable comment. There is history here. Their daughter used to live with them until they moved house a year or so ago. After moving they discovered some 'debts' they knew nothing about. They came to us for financial help and advice which we were glad to give, but the mystery still remains as to where the debts came from. Since then, my brother in law suffered a brain trauma which he survived against all the odds. He keeps phoning me for advice on his pensions, and I keep telling him to get independent financial advice - I am in no way qualified. It is us they are coming to stay with next week, and I know he will continue to talk about his pensions which is playing on his mind an awful lot. He is not the man he used to be unfortunately following his illness. I just wanted to know whether a financial advisor should be discussing his affairs in his absence - he has not signed anything giving permission. If this is unethical, then I will tell him it is unethical and that he should make sure he is at any further discussions.

Pension_Geek

Fun_in_the_sun wrote: »

Yes, you do sound rude but it's a perfectly reasonable comment. There is history here. Their daughter used to live with them until they moved house a year or so ago. After moving they discovered some 'debts' they knew nothing about. They came to us for financial help and advice which we were glad to give, but the mystery still remains as to where the debts came from. Since then, my brother in law suffered a brain trauma which he survived against all the odds. He keeps phoning me for advice on his pensions, and I keep telling him to get independent financial advice - I am in no way qualified. It is us they are coming to stay with next week, and I know he will continue to talk about his pensions which is playing on his mind an awful lot. He is not the man he used to be unfortunately following his illness. I just wanted to know whether a financial advisor should be discussing his affairs in his absence - he has not signed anything giving permission. If this is unethical, then I will tell him it is unethical and that he should make sure he is at any further discussions.

Saying it is unethical is assuming that the Adviser knows that he will be discussing the pensions with the Daughter alone at this stage, which he might not.

If this is the first meeting, then the Adviser will be looking to get some facts, and generally, get some Letters of Authority signed in order to get a proper picture of your brother in laws pensions. Without this, there is nothing the adviser can do with the pensions.

Albermarle

My brother in law has two small pensions due in April & June 2019

You should be aware that if the pensions really are small ( say less than £50K in total ) an IFA will either not be interested, or the fee will be disproportionally large relative to the pension.
A FA ( not independent and linked to a bank or similar ) would be more interested and cheaper , but will be pushing only their own products.

dunstonh

You should be aware that if the pensions really are small ( say less than £50K in total ) an IFA will either not be interested, or the fee will be disproportionally large relative to the pension.

Not necessarily. A general practitioner IFA will often make time for simple transactional cases where the fee may be £500. Often resulting in a product change that will save them more than that within a year or two. Although perhaps, not so much at the end of the tax year when IFAs are run off their feet.

Brynsam

Fun_in_the_sun wrote: »

Yes, you do sound rude but it's a perfectly reasonable comment. There is history here. T

Very hard to comment helpfully, let alone on an informed basis, when posters give next to no information about the background of their question. In this case setting the scene would have enabled others to make much more useful observations.

LHW99

It sounds as if your friend could do to regularise things with a POA, if he trusts his daughter to that extent.