Hargreaves Lansdown v Brookes MacDonald

NottinghamKnight

Donnymad said:

Thanks, dunstonh. I wouldn’t be too confident in DIY investments so I think that I will investigate the possibility of using an IFA...if I can find one!

Mind you, the service that I have received from H.L. over the years has been good, along with some decent returns...it’s just that I have only now  awakened to the fact that a good proportion of these returns has gone in charges. More fool me! 🤦‍♂️

I understand that about 1.4 million people are invested with the company, so they can’t all be as concerned as me, eh?

What sum are you looking at, that could be critical in it being worthwhile for an ifa to become involved. 

Donnymad

NottinghamKnight said:

Donnymad said:

Thanks, dunstonh. I wouldn’t be too confident in DIY investments so I think that I will investigate the possibility of using an IFA...if I can find one!

Mind you, the service that I have received from H.L. over the years has been good, along with some decent returns...it’s just that I have only now  awakened to the fact that a good proportion of these returns has gone in charges. More fool me! 🤦‍♂️

I understand that about 1.4 million people are invested with the company, so they can’t all be as concerned as me, eh?

What sum are you looking at, that could be critical in it being worthwhile for an ifa to become involved. 

In round figures, about £200k for myself and my wife. 

I’ve googled IFA and the reviews for a company called Ellis Bates are excellent. It would appear, though, that unless you live in Harrogate, Newcastle or London consultations would have to be by ‘phone or Zoom. I’d rather have them face-to-face. 

AnotherJoe

OP, serious suggestion, find an IFA to manage your investments.

dunstonh

Mind you, the service that I have received from H.L. over the years has been good, along with some decent returns...

IFAs usually like coming across HL customers that use their portfolio service.   Lower charges and better returns are frequently the outcome.

I understand that about 1.4 million people are invested with the company, so they can’t all be as concerned as me, eh?

HL is the largest DIY platform.   When you look at the top 10 funds purchased on HL (they publish them periodically) it is clear that a good number of those people shouldn't be doing DIY.      If you don't know what you have is value for money compared to alternatives then you would not be concerned.

I’ve googled IFA and the reviews for a company called Ellis Bates are excellent. It would appear, though, that unless you live in Harrogate, Newcastle or London consultations would have to be by ‘phone or Zoom. I’d rather have them face-to-face. 

Look at local firms then.  Avoid those that market themselves as wealth management (not on search engines but in their own marketing).

kinger101

bowlhead99 said:

Michael121 said:
2.5% how is that even legal. 

I suppose it's because under capitalism, people are allowed to charge money for products and services, including financial products and services - and the purchasers can decide which ones they'd like to buy.

An unusually succinct post from you BH.  Are you okay?

Albermarle

I understand that about 1.4 million people are invested with the company, so they can’t all be as concerned as me, eh?

Many of their customers will just use the basic investment platform service ( at 0.45%) and buy investments that are not connected to, or operated by HL . 

Others like yourself will buy in the full range of expensive services and HL suggested funds .

An IFA could cost you a couple of grand initially and then around 0.7% pa + funds + platform costs . Maybe around 1.5/1.8% total .Or you could DIY for less than 1 % ( or even less than 0.5 %) but that sounds like it might be a step too far at the moment,

Donnymad

dunstonh said:

Mind you, the service that I have received from H.L. over the years has been good, along with some decent returns...

IFAs usually like coming across HL customers that use their portfolio service.   Lower charges and better returns are frequently the outcome.

I understand that about 1.4 million people are invested with the company, so they can’t all be as concerned as me, eh?

HL is the largest DIY platform.   When you look at the top 10 funds purchased on HL (they publish them periodically) it is clear that a good number of those people shouldn't be doing DIY.      If you don't know what you have is value for money compared to alternatives then you would not be concerned.

I’ve googled IFA and the reviews for a company called Ellis Bates are excellent. It would appear, though, that unless you live in Harrogate, Newcastle or London consultations would have to be by ‘phone or Zoom. I’d rather have them face-to-face. 

Look at local firms then.  Avoid those that market themselves as wealth management (not on search engines but in their own marketing).

Thanks, dunstonh, will do! 

Donnymad

AnotherJoe said:

OP, serious suggestion, find an IFA to manage your investments.

Already starting initial searches, AJ!

Donnymad

Albermarle said:

I understand that about 1.4 million people are invested with the company, so they can’t all be as concerned as me, eh?

Many of their customers will just use the basic investment platform service ( at 0.45%) and buy investments that are not connected to, or operated by HL . 

Others like yourself will buy in the full range of expensive services and HL suggested funds .

An IFA could cost you a couple of grand initially and then around 0.7% pa + funds + platform costs . Maybe around 1.5/1.8% total .Or you could DIY for less than 1 % ( or even less than 0.5 %) but that sounds like it might be a step too far at the moment,

Thanks, Albermarle. I would have hoped that charges would be a bit nearer to the 0.7%, (plus VAT?), but I didn’t factor in the other costs.

The_Earl_of_Streatham

bowlhead99 said:

Michael121 said:
2.5% how is that even legal. 

I suppose it's because under capitalism, people are allowed to charge money for products and services, including financial products and services - and the purchasers can decide which ones they'd like to buy.

Is that the same capitalism that mis-sold endowment policies to pay off mortgages; that mis-sold pensions schemes to people who already had perfectly adequate vehicles or that mis-sold payment protection insurance to people taking out bank loans, or is it a different one?
That these things became scandals was not because of purchasers deciding which ones they'd like to buy, nor was it because circumstances changed to make the outcome of people's decisions look poor with hindsight. It was because the sellers of these products knew they were flawed at the outset and the institutions selling them had a strong incentive not to disclose this.