IFA charges

ashpan

I’ve been in discussions with an IFA who didn’t tell me he only uses one company for investing, also he said his first couple of meetings were foc until I decided if I wanted to use him. the last meeting I was asking a few questions as I was aware he’d forgotten to put some savings into a pension assessment programme (via his very old and slow laptop) and he got a bit abrupt with me - then proceeded to tell me his fee for that meeting was £500! I was speechless and really don’t want to use him now - I’ve emailed him over a week ago to tell him how surprised I was at the fee and the use of only one company and despite a polite reminder he’s not replied - instead has sent me a pile of documents to sign. do I have to pay the £500?

jaybeetoo

If he didn’t tell you about the charge before the meeting then you don’t owe him anything.

pramsay13

Do you have an agreement as to what meetings are free and when you start to pay?

Alistair31

Run for the hills.

Malthusian

Using only one company for investing is not necessarily bad if we are talking about investing with one company as opposed to investing in one company.

Using one company as a fund platform is normal (this is an administrative choice and not an investment choice) as is using one DFM (it is their job to diversify across hundreds and thousands of companies) and occasionally one fund (if the fund performs the same role).

Any IFA using one company for any role does however have a tenuous grasp on the "independent" label, at best. Are you sure he is an IFA? Many people seeing restricted FAs think they are seeing IFAs.

The rest is just weird. Run for the hills.

[Deleted User]

Don't sign, don't pay, his move.

ianthy

Move on fast... plenty of good fish in the sea.

ashpan

No agreement before we met, maybe I’m just too trusting! What’s a reasonable hourly charge for an IFA?

SonOf

ashpan wrote: »

No agreement before we met, maybe I’m just too trusting! What’s a reasonable hourly charge for an IFA?

It is rare to be charged on the first meeting. Mainly as the IFA has to present you their terms of business. So, you wouldn't expect an agreement before the first meeting.

Most IFAs will not charge anything for the first hour or first meeting but when they want to charge you they must state in advance that they are doing so.

Most IFAs do not have an hourly rate as it is not a popular consumer option. However, something in the £150+VAT would be ballpark. More if it is a city firm.

Clive_Woody

ashpan wrote: »

I’ve been in discussions with an IFA who didn’t tell me he only uses one company for investing, also he said his first couple of meetings were foc until I decided if I wanted to use him. the last meeting I was asking a few questions as I was aware he’d forgotten to put some savings into a pension assessment programme (via his very old and slow laptop) and he got a bit abrupt with me - then proceeded to tell me his fee for that meeting was £500! I was speechless and really don’t want to use him now - I’ve emailed him over a week ago to tell him how surprised I was at the fee and the use of only one company and despite a polite reminder he’s not replied - instead has sent me a pile of documents to sign. do I have to pay the £500?

How many meetings have you had with him?

mark13

I am currently using an IFA to transfer a DB pension . I met with 3 IFA's and opted for the one I felt most comfortable with, though I have to say they were all knowledgeable and happy to discuss my situation without any commitment.
Having selected an IFA , I have had 3 one hour meetings with him, all FOC , I have not been pressurised and he is happy to wait until I feel comfortable to continue. Only good experiences so far. Good luck.