Intermediary or not?

Loosestrife

I currently have investments held with Close Brothers self-directed intermediary services. Close Brothers use the Aegon platform actually to hold the investments.
Close Brothers have announced they are getting out of this service and propose to transfer customers to an equivalent self-directed intermediary, Elson, and that if customers don't agree, they will end up as direct customers of Aegon.
What would I lose as a direct customer or Aegon, vs an intermediary?

• This is self-directed, so the intermediary is not providing investment advice as such.
• I understand that they provide an additional layer of support and nice data around performance etc.
• They claim to have negotiated a better % fee with Aegon, but I assume this is offset by their own intermediary fee (Elson will charge 0.35% pa)
• They also provide "re-registration", which I guess is important if one moves things around between platforms.

Trying to decide if I really need an intermediary at all. Thanks for any guidance!

SonOf

What would I lose as a direct customer or Aegon, vs an intermediary?

An intermediary would be an IFA. Aegon is a weak platform. Its fine for really basic stuff but its not great. So, a different platform may be better (or may not be). I believe Aegon restrict invesmtent choice on direct customers without an intermediary.

They claim to have negotiated a better % fee with Aegon, but I assume this is offset by their own intermediary fee (Elson will charge 0.35% pa)

Virtually all IFAs have special terms with Aegon. You dont pick Aegon for quality. Yuu pick them only for price and Aegon have been giving special terms to anyone that asks.

Trying to decide if I really need an intermediary at all. Thanks for any guidance!

Close Brothers was expensive and non-advised. So, if you selected that yourself then you probably would be better of with an IFA. However, if you are able to research and utilise your own investment range then you wont need an IFA.

talexuser

Elson are also expensive for funds if they are not giving advice.

Loosestrife

Thanks that's useful.

I believe Aegon restrict investment choice on direct customers without an intermediary.

Ah, that could be important. Do you mean a reduced set of (eg) funds available (which I assume could also affect transfer) or less capability in management?

Elson are also expensive for funds if they are not giving advice.

So would it be correct that their charges would more than offset any discounts they have at Aegon?

However, if you are able to research and utilise your own investment range then you wont need an IFA.

So sounds like I don't need an intermediary. Any recommendations for a better self-managed platform than Aegon, then, which is low cost but offers a broad range of funds? eg - Interactive Investor worth considering?

Albermarle

So sounds like I don't need an intermediary. Any recommendations for a better self-managed platform than Aegon, then, which is low cost but offers a broad range of funds? eg - Interactive Investor worth considering?

Each of the platforms have different charging structures that suit different clients . Fixed fee ones like II are usually better for larger funds , whilst platforms that charge a % fee are better for small/medium size pots.
In addition some charge extra for a SIPP, and some charge extra for drawdown .
Some are free to switch funds , some not .
Some cap charges at a low level for holding shares/ETF's and IT's etc etc .
http://www.comparefundplatforms.com/

DrSyn

This might help with platform charges:-

http://www.comparefundplatforms.com/

https://www.boringmoney.co.uk/calculator/

https://monevator.com/compare-uk-cheapest-online-brokers/


Before transferring to another platform, make sure they cover the investments you require.