IFA locking me in to ongoing fees

Malthusian

segovia wrote: »

I am effectively locked into an agreement with the IFA or another IFA if I proceed with the recommended SIPP. This is contrary to the assurance given to me by the IFA that I am NOT locked into anything.

You are not locked into anything. You can leave the pensions where they are. Or transfer them to someone other than Talbot & Muir, wherever you wish.

What you can't do is get the IFA to make a recommendation and then try to implement his solution without paying for the advice, because his solution involves a SIPP provider that doesn't want non-advised clients.

Charging more on a transactional basis than the initial part of the initial + ongoing proposition makes perfect sense due to the higher risk to the IFA of acting on a transactional basis. If you don't want to pay him on that basis either, it's a free country.

segovia

Just when I thought it couldn't get any worse. I called the Rathbones to inquire about the DMF fund that the IFA has recommended. As we were discussing charges I mentioned the IFA's company, he said that's dealt with by a different team when I asked why he said the IFA's company is owned by Rathbones. ! So much for independent advice, do I have a case now?

jonnygee2

No transfer has been made yet we have reached a hiatus.

Okay so whats the problem. Just tell him you aren't happy with the offer and don't want to proceed.

I don't think you owe him anything as you never agreed terms and he hasn't transferred anything yet.

JoeCrystal

segovia wrote: »

Just when I thought it couldn't get any worse. I called the Rathbones to inquire about the DMF fund that the IFA has recommended. As we were discussing charges I mentioned the IFA's company, he said that's dealt with by a different team when I asked why he said the IFA's company is owned by Rathbones. ! So much for independent advice, do I have a case now?

Is it Vision Independent financial planning by any chance? Again, I am not sure what is the case here? As jonnygee2 highlighted already, say that you do not want to go ahead.

segovia

JoeCrystal wrote: »

Is it Vision Independent financial planning by any chance? Again, I am not sure what is the case here? As jonnygee2 highlighted already, say that you do not want to go ahead.

Yes it is Vision FP, what should I know ?

segovia

jonnygee2 wrote: »

Okay so whats the problem. Just tell him you aren't happy with the offer and don't want to proceed.

I don't think you owe him anything as you never agreed terms and he hasn't transferred anything yet.

I agreed to pay for the advice which included the transfer. In his summary of charges, the transfer is quoted as 2 hours work so that's the best I could hope to achieve as a discount.

J

segovia

Malthusian wrote: »

You are not locked into anything. You can leave the pensions where they are. Or transfer them to someone other than Talbot & Muir, wherever you wish.

What you can't do is get the IFA to make a recommendation and then try to implement his solution without paying for the advice, because his solution involves a SIPP provider that doesn't want non-advised clients.

Charging more on a transactional basis than the initial part of the initial + ongoing proposition makes perfect sense due to the higher risk to the IFA of acting on a transactional basis. If you don't want to pay him on that basis either, it's a free country.

I agree with what you say but there is a contradiction in what he claims

1, The IFA claims I can walk away from any ongoing fees/service at any time without penalty, I have that in writing twice

The contradiction is...

2, His recommended SIPP provider will not deal with me directly, they are not an execution only SIPP so I have to transfer from the SIPP at a cost of £150.00 or pay another IFA to provide the investment advice, who I expect will want a % ongoing

That is a lockin or a penalty in my eyes.

J

JoeCrystal

segovia wrote: »

Yes it is Vision FP, what should I know ?

Well, they got an example of Our Services and Client Agreement on their website and it is clearly highlighted that it is owned by Rathbone Brothers PLC. I am actually surprised that you never got Our Services and Client Agreement. It also covered their dealing with Discretionary Investment Managers as well. It is usually one of the things you looked at your first meeting in my last two experiences.

segovia

JoeCrystal wrote: »

Well, they got an example of Our Services and Client Agreement on their website and it is clearly highlighted that it is owned by Rathbone Brothers PLC. I am actually surprised that you never got Our Services and Client Agreement. It also covered their dealing with Discretionary Investment Managers as well. It is usually one of the things you looked at your first meeting in my last two experiences.

I can't find any reference on the Vision Website, do you think that the IFA should have told me that Rathbones has a financial interest in Vision?

JoeCrystal

segovia wrote: »

2, His recommended SIPP provider will not deal with me directly, they are not an execution only SIPP so I have to transfer from the SIPP at a cost of £150.00 or pay another IFA to provide the investment advice, who I expect will want a % ongoing

That is a lockin or a penalty in my eyes.

J

No, you can just look for another IFA who will deal on a transactional basis.