IFA Charge

[Deleted User]

The financial landscape change require clients to act. 
The industry know that many will not. 
Anyone accessing MSE is halfway to a good deal - not so the others.
One of the really annoying things about the "risk profile" process is that the financial services industry are identifying their perfect clients: those who are unlikely to move.

dunstonh

Actually, part of the problem is that there is NOT enough competition.   The number of financial advisors has, I recall reading here, dramatically dropped in the past 5-10 years. 

It was believed to be around 300,000 at peak (going back to the home service days).  Its about 25,000 ish now.

but I would guess there are very few IFAs who offer to give advice for a fee: far easier to take a % every year from 200-300 clients.

I would estimate it at around 50/50 in terms of transactional vs ongoing advice in respect of new clients.

There is a positive dearth of help to lower earners in particular.  Not sure there is any easy answer, unfortunately. 

It was predicted prior to the RDR that advice would drop the lower end of the market and that has happened.   The FAMR and MiFIDII didn't help either.    The work involved in advice is a bit like an iceberg.   The client sees the tip but not the bulk that is below.   The bulk of what is put on file for audit trail never sees the light of day again.

The recent review of the FAMR by the FCA did indicate that part of the problem is that you have advice and no advice and not much in between.  Firms are scared to offer guidance services out of fears they will suffer liability for full advice.  i.e. person complains later down the road about advice.  Firm says they didn't give advice but guidance but FOS tells the firm to assess the complaint as if it was advised.  Firm cant do that as they didn't give advice so they have to pay out.     

As it stands, you effectively have advice or no-advice with no real middle ground. Robo-guidance goes some way with its flow chart style guidance but it is limited to small selection of outcomes available from the in-house product range.  

[Deleted User]

It was believed to be around 300,000 at peak (going back to the home service days).  Its about 25,000 ish
69% of DB transfers were approved between April '15 and Sept '18. 
, and 70% signed up ffr ongoing fees.
klondyke years for financial advisers

If you still have one -attached like a pilot fish to your financial journey - get rid.

Albermarle

I would estimate it at around 50/50 in terms of transactional vs ongoing advice in respect of new clients

From what I remember of various other threads, I had the impression that most clients do not like transactional advice, as they do not know the cost in advance as they have to effectively pay by the hour and prefer ongoing advice , with a fixed initial charge .

But you say it is actually about 50:50 which is surprising.

dunstonh

Albermarle said:

I would estimate it at around 50/50 in terms of transactional vs ongoing advice in respect of new clients

From what I remember of various other threads, I had the impression that most clients do not like transactional advice, as they do not know the cost in advance as they have to effectively pay by the hour and prefer ongoing advice , with a fixed initial charge .

But you say it is actually about 50:50 which is surprising.

It is hourly rates that are not liked.    Fixed fee or single one off % percentage are most common on transactional advice.

In respect of transactional vs ongoing, it will obviously vary with firms.  A "wealth management" style firm would normally be more interested in taking on clients with ongoing.  So, their charging structure may well be based on that as well as their willingness to do transactional work.  Whilst a general practice firm typically does anything and everything.

VAT could come into play as well. A review of an existing plan with no intention to purchase a new one or top up would be Vatable.    Whereas ongoing services that offer top ups at no additional cost (so part of the ongoing service) are non-Vatable (even if no top up is made).

Prism

ZingPowZing said:

It was believed to be around 300,000 at peak (going back to the home service days).  Its about 25,000 ish
69% of DB transfers were approved between April '15 and Sept '18. 
, and 70% signed up ffr ongoing fees.
klondyke years for financial advisers

If you still have one -attached like a pilot fish to your financial journey - get rid.

You aren't exactly the poster child of DIY investing with your own frankly nuts ideas about how to put together a decent diversified portfolio designed to grow your wealth and then keep you during a long retirement. I would recommend a paid for IFA over the kind method you use any day of the week.

[Deleted User]

Prism said:

ZingPowZing said:

It was believed to be around 300,000 at peak (going back to the home service days).  Its about 25,000 ish
69% of DB transfers were approved between April '15 and Sept '18. 
, and 70% signed up ffr ongoing fees.
klondyke years for financial advisers

If you still have one -attached like a pilot fish to your financial journey - get rid.

You aren't exactly the poster child of DIY investing with your own frankly nuts ideas about how to put together a decent diversified portfolio designed to grow your wealth and then keep you during a long retirement. I would recommend a paid for IFA over the kind method you use any day of the week.

Really?
Have you a link to that?

[Deleted User]

I deplore the ad hom posts as a rule.
But since Prism has brought it up (and garmeg thanked him for it)  the Pension I wrested into my control in '18 has risen in value by 60%..
It's not a case of reading a volume or being lucky.
I could easily buy back the DB benefits I gave up but far happier being in control of my fortune. 

Prism

ZingPowZing said:

Prism said:

ZingPowZing said:

It was believed to be around 300,000 at peak (going back to the home service days).  Its about 25,000 ish
69% of DB transfers were approved between April '15 and Sept '18. 
, and 70% signed up ffr ongoing fees.
klondyke years for financial advisers

If you still have one -attached like a pilot fish to your financial journey - get rid.

You aren't exactly the poster child of DIY investing with your own frankly nuts ideas about how to put together a decent diversified portfolio designed to grow your wealth and then keep you during a long retirement. I would recommend a paid for IFA over the kind method you use any day of the week.

Really?
Have you a link to that?

Oh come on - you even had an entire challenge based on it. Yes, I know you won over a single year but its still a poor way of investing. Your original point....
Seeking Advice on HL SIPP allocations — MoneySavingExpert Forum

[Deleted User]

It's not over one year, Prism. 
If you wish to back the financial services champion to overtake me on the 2nd anniversary, or an any threrafter, you are welcome to double down on his bet, up to a maximum of 15 years, whereupon your liability may exceed £ million.