What If My IFA Sells Up?

Twointhebush

It's occurred to me that it's possible that my chosen IFA could sell his business? Then I have no control of who my IFA is, especially if there are exit fees? Or is my 'contract' strictly with my existing IFA?

Thanks,

dmelife

Then find another one. Like you would with any other profession.
There is no ‘contract’. Both parties are free to call it a day at any point.

SonOf

Then I have no control of who my IFA is, especially if there are exit fees?

IFAs are not allowed exit fees.

And you have full control. You appoint a new IFA of your choice.

Twointhebush

Ok thanks. But my IFA gets an annual % from the investments we've already made. If he sells, then I have to deal with somebody completely different. Can the new 'owner' increase the %? What if I find them objectionable? Are there any other changes they can make?

Keep_pedalling

Twointhebush wrote: »

Ok thanks. But my IFA gets an annual % from the investments we've already made. If he sells, then I have to deal with somebody completely different. Can the new 'owner' increase the %? What if I find them objectionable? Are there any other changes they can make?

Just read the answers you have already been given.

SonOf

Can the new 'owner' increase the %?

Yes. However, a new agreement would have to be completed with you.

What if I find them objectionable?

Then you change the IFA.

Are there any other changes they can make?

Not without your permission.

We have taken on about 6 new clients without existing platform business in the last few weeks. One was with HL. IFAs cannot use HL. So, that is being moved from HL. Plus where it is being moved to is cheaper. Another is with Fidelity. It could stay at Fidelity but we get lower platform charges elsewhere. So, that will be moving. Another is with Novia platform. As a general practitioner IFA, we do not have the ability (or wish) to use Novia (as the adviser must commit to placing £Xm on that platform and be their primary platform. That effectively restricts the adviser). So, that will be moved off (plus Novia are expensive). And another was with Aviva. We are keeping that one on Aviva but just getting the charges lowered to match our terms. And another was with Elevate and that is staying put.

So, you can see that just from a sample in a few weeks, that all of which could be serviced by the new IFA. In some cases it was being left on the existing platform. On some cases it was being moved but with justifiable reasons. None of them created any problems for the "new" IFA. It was all routine.

The only time a new adviser will have problems is if the investor chose a company like SJP and/or where an offshore bond has been used with a restricted provider.

capital0ne

where's old Dunsty boy when he's needed?

AnotherJoe

capital0ne wrote: »

where's old Dunsty boy when he's needed?

:rotfl:


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bostonerimus

The OP should realise that they are in charge. The IFA relationship can be severed and they can find a new one at any time. They are also allowed to negotiate the fee and should do so aggressively. They also have the option to DIY and not use an IFA.

To often pension companies, IFAs and especially the client seem to have the power structure upside down, It's the client that should be in control.

Marcon

capital0ne wrote: »

where's old Dunsty boy when he's needed?

Past use of one name is no guide to future use of other names...

cfw1994

Marcon wrote: »

Past use of one name is no guide to future use of other names...

The value of your names may go down, as well as up!