When is an independent financial advisor not independent?

Jonesy1977

So we have a SIPP with a commercial property held within it and the rent (and additional payments) being made into a standard global growth fund.   We retained an advisor to set up the SIPP and provide advice and since then the advisor has moved on to St James Place.  The ongoing advice linked to our SIPP is now provided by Policy Services (wholly owned by St James Place) and our advisor has asked us to sign a new client engagement form (in order to reduce fees) and on the form it clearly states that they are only able to provide advice on SJP products.  When I have asked about this today I was told that the Advisor is not an IFA but that Policy Services is and therefore our advisor is actually an introducer and cannot provide advice outside of SJP but that because they (Policy Services) are an IFA she would use their telephone based advisors  to give us advice outside of SJP.    
Does this make sense to anyone?  could anyone explain the nuance of advisor and introducer?

Albermarle

Sounds like Smoke and Mirrors .

wjr4

Find another IFA 

fred246

Advisers buy and sell customers. You are expected to just sign without reading or thinking about it.

barnstar2077

Run away, run away!

dunstonh

When I have asked about this today I was told that the Advisor is not an IFA but that Policy Services is and therefore our advisor is actually an introducer and cannot provide advice outside of SJP but that because they (Policy Services) are an IFA she would use their telephone based advisors  to give us advice outside of SJP.

I don't believe that policy services refer to themselves as IFAs.  I suppose they could meet the regulatory definition in that they do not have any restrictions in the provision of advice.   However, as they do not set up new policies or investments, that would be hard to demonstrate.  They are just a home for ex IFAs or whole of market advisers selling out to SJP to continue earning on policies/plans that cannot immediately be churned over to SJP.  

My gut tells you that you have just been given a bit of sales speech.    I wouldn't be too hung up on whether they are technically IFAs or not. They exist to allow SJP sales reps to continue earning money on plans or policies that cannot at that time be moved to SJP.     The advice each year, at policy level, will be "no change" until such time the SJP sales rep persuades you that the SJP plan is better.

These may explain their process more

Under the bonnet of an SJP acquisition | Money Marketing

SJP acquires IFA firm Policy Services  | Money Marketing

The choice should nearly always be to either DIY or use an IFA.  Not to use an FA.  

fred246

But you said it was OK for an IFA to sell customers to FAs.

Joey_Soap

fred246 said:

But you said it was OK for an IFA to sell customers to FAs.

Very well said. It stinks, frankly. Excellent demonstration why advisor's interests are rarely aligned to the client's.

DT2001

fred246 said:

But you said it was OK for an IFA to sell customers to FAs.

Who and when, I can’t see that

fred246

https://forums.moneysavingexpert.com/discussion/6202817/ifa-advises-pension-move-to-true-potential-thoughts-please

DT2001

fred246 said:

https://forums.moneysavingexpert.com/discussion/6202817/ifa-advises-pension-move-to-true-potential-thoughts-please

The link takes you to the end of a thread in which it is acknowledged that the business of an IFA can be sold to an FA. I assume you are referring to dunstonh but it seems he recommended finding an IFA or DIY as he has done here. Caveat emptor and the OP is obviously doing the right thing. Maybe you can point the OP in the right direction - can he DIY a SIPP with a commercial property, should he have 2 SIPPs one with property and one with other assets?