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Transferring DB investment thoughts

My brother has just had a positive recommendation and will be transferring his DB, about £340K and he will take the lump sum.

One part during the advice process, he was asked about attitude to risk etc and also whether he had ethical preferences within investments, his answer to this was a definite No.
He now has the paperwork to sign and having read this I find that they have advised transferring to Aviva and that it is invested in Tatton Ethical Defensive. The charges are 0.3% first 75K and 0.2% on the rest, pretty much fine I told him. They are also passing over to a different financial services company with an ongoing charge of 0.75%. There is also a Discretionary Investment Model management Charge of 0.15%
I know he does not have to take these recommendations and/or the ongoing charge. I am a little surprised that they have recommended this investment after he told them he had no interest in ethical investing. I intend to look a little more into Tatton Ethical Defensive, but though I would ask the knowledgeable folk on here if they had any thoughts on any of this. Thanks

Comments

  • Marcon
    Marcon Posts: 15,924 Forumite
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    trevjl said:
    My brother has just had a positive recommendation and will be transferring his DB, about £340K and he will take the lump sum.

    One part during the advice process, he was asked about attitude to risk etc and also whether he had ethical preferences within investments, his answer to this was a definite No.
    He now has the paperwork to sign and having read this I find that they have advised transferring to Aviva and that it is invested in Tatton Ethical Defensive. The charges are 0.3% first 75K and 0.2% on the rest, pretty much fine I told him. They are also passing over to a different financial services company with an ongoing charge of 0.75%. There is also a Discretionary Investment Model management Charge of 0.15%
    I know he does not have to take these recommendations and/or the ongoing charge. I am a little surprised that they have recommended this investment after he told them he had no interest in ethical investing. I intend to look a little more into Tatton Ethical Defensive, but though I would ask the knowledgeable folk on here if they had any thoughts on any of this. Thanks
    What's his attitude to risk?
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • trevjl
    trevjl Posts: 300 Forumite
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    What's his attitude to risk?
    On the paperwork it says "cautious stock market"  I would describe him as cautious to medium
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    trevjl said:
    What's his attitude to risk?
    On the paperwork it says "cautious stock market"  I would describe him as cautious to medium
    It's how your brother responded to the questions asked that matter. Not how you would describe him. Risk in all it's facets is rarely fully understood. 
  • trevjl
    trevjl Posts: 300 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    trevjl said:
    What's his attitude to risk?
    On the paperwork it says "cautious stock market"  I would describe him as cautious to medium
    It's how your brother responded to the questions asked that matter. Not how you would describe him. Risk in all it's facets is rarely fully understood. 
    Indeed, that's why I quoted from the official paperwork
  • dunstonh
    dunstonh Posts: 121,294 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    trevjl said:
    What's his attitude to risk?
    On the paperwork it says "cautious stock market"  I would describe him as cautious to medium
    What is the context of cautious and cautious to medium?

    One person's cautious is another persons high risk.


    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.
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