Portfolio Switching Costs on IFA takeover

alsclarkalsclark Forumite
3 Posts
First Post
MoneySaving Newbie
My IFA merged (was taken over) with another.  My original IFA picked stocks themselves but the new one contracts out. The new one wants me to switch my portfolio to a managed fund on another platform but wants to charge me 1% to do this (and this will be on top of their annual fee) AIBU to feel that this is a stitch up?  I am seriously considering changing IFAs or transferring everything to the Fidelity platform into a spread of managed funds and managing my portfolio myself. I am 52, mortgage free, with a generous (PLSA luxurious) defined benefit pension that I can access at 55 - so no need for income drawdown. Balanced attitude to risk and looking for growth for next 5 years.

Replies

  • dunstonhdunstonh Forumite
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    The new one wants me to switch my portfolio to a managed fund on another platform but wants to charge me 1% to do this (and this will be on top of their annual fee)

    That does not seem ethical and if they are intent on doing that then you should walk.     It is different if you were moving to another IFA by choice (and even then, often IFAs will waive the initial fee if the amount is high enough.  Although smaller values that would be unlikely).  

    Balanced attitude to risk and looking for growth for next 5 years.

    What is happening to the money in 5 years time that you need it all then?

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • alsclarkalsclark Forumite
    3 Posts
    First Post
    MoneySaving Newbie
    The intent is to carry on working in a reduced capacity until 60 then retire fully, using the saved capital (estimate circa £600k) to help my 2 kids with house purchase and a few very indulgent holidays.
  • edited 22 December 2020 at 9:42AM
    IvanOpinionIvanOpinion Forumite
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    edited 22 December 2020 at 9:42AM
    You don't give many details but I personally would not 'throw away' 1% of my portfolio without good reason.  For a £600K portfolio you should look at other platforms as well (depending on whether or not you are a buy-and-hold type of person you might be able to save over Fidelity).  Try putting your numbers into http://www.comparefundplatforms.com/
    Ivan has left the building ... but reserves the right of reply!
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