Is My IFA Trying To 'Sell' Me To True Potential?

Foresty_Forest

I think there's also an asset management called Tatton, that my IFA defers to, between himself and Aviva? How does this complicate things?

dunstonh

Foresty_Forest said:

I think there's also an asset management called Tatton, that my IFA defers to, between himself and Aviva? How does this complicate things?

Basically, rather than the IFA buying in the research, due diligence etc and then creating the portfolio, they have decided to use a discretionary fund manager (Tatton).     This is common with Wealth Management IFAs/FAs but not so much with general practice IFAs.   It saves the IFA time and money to use a DFM.  However, the sting in the tail is that most IFAs using a DFM do not reduce their charge for doing less work and having lower costs and they actually get you to pay the DFM charge which is on top of the normal fund charges.   So, you have an extra layer of charges to cover the DFM and the IFA gets to keep more of their charge.
As you can see, I am not a fan of DFMs.    That said, there are times they can be suitable for clients but, in my opinion, not very many.   Effectively, your current adviser is not making any investment decisions or giving investment advice to you.  Tatton is doing it.

True Potential is very similar to that.

Foresty_Forest

IvanOpinion said:

Personally, I would start walking and then running away - it is unlikely that this is being done in your interests.

Ok, but where do I run to? My policy with Aviva is bought through my IFA. 

Albermarle

Foresty_Forest said:

IvanOpinion said:

Personally, I would start walking and then running away - it is unlikely that this is being done in your interests.

Ok, but where do I run to? My policy with Aviva is bought through my IFA. 

You could discuss with Aviva just deleting the IFA from the records and you will handle it directly . This may or may not be possible as Aviva have different product offerings for different types of customer . Otherwise they could move you to a different product, maybe with a different charging structure and maybe not all your current investments would be available . You will only find out by calling them .
Of course you could transfer out of Aviva altogether.

dunstonh

Foresty_Forest said:

IvanOpinion said:

Personally, I would start walking and then running away - it is unlikely that this is being done in your interests.

Ok, but where do I run to? My policy with Aviva is bought through my IFA. 

Either appoint a new IFA or decide if you are going to DIY or not.  I think you need to stop referring to the existing adviser as an IFA.    Moving to TP and getting a bung from TP for doing so means they cannot be an IFA any more.

milton1970

Solution = Find a good new IFA .. don’t go TP

Foresty_Forest

I'm now wary of finding a new IFA - I thought this one was good. 

My thoughts now are to keep my current IFA for my current Aviva SIPP. And from now on possibly try TP for future investment - I see they're openly inviting individuals to invest with them - essentially cutting my IFA out.
I will ring Aviva shortly to see what they advise.

zagfles

Worth checking the FO site for any new adviser https://www.financial-ombudsman.org.uk/decisions-case-studies/ombudsman-decisions

dunstonh

I'm now wary of finding a new IFA - I thought this one was good. 

the term IFA covers a range of business models.   You were already with one that used "wealth management" and that is the type that you should typically try to avoid.   A general practitioner localised firm that isn't a wealth manager or doesnt use a wealth manager would probably be up your street.

My thoughts now are to keep my current IFA for my current Aviva SIPP. 

I would be concerned with their ethics.  Putting you into a solution that is worse than available on Aviva (which can be a nice cheap platform as well as being whole of market.  Many IFAs will have special deals with Aviva and not have standard pricing) and taking remuneration from the provider which is not allowed unless they are moving to TP or retiring does not sound like you are getting a good deal (of course, we are reliant on your side of the story/your interpretation).

And from now on possibly try TP for future investment

Why would you want that?

 I see they're openly inviting individuals to invest with them - essentially cutting my IFA out.

They are not cutting the IFA out.   They are replacing the IFA with their own sales rep.

I will ring Aviva shortly to see what they advise.

Aviva do not give advice.  

Foresty_Forest

I haven't made a decision yet. But my Aviva investments have increased in value considerably in recent weeks. I think I could lose quite a lot during the transition to TP? If I were to move, wouldn't it be better to do so when everything is in reverse?