Cancel IFA visit

Daliah

Malthusian said:

Daliah said:

How do you know this?

Even an old-school salesman won't pressure the OP into anything at the introductory meeting.

Amazing how you can all predict what will happen. Could you please tell me tomorrow‘s Euromillion numbers? Ta very muchly 🤓

Bod_1234

Thanks for all the replies on this. The person does refer to themselves as an Independent Financial Advisor DipPFS BA (Hons)

 They also charge a % comission or a fixed fee.

After reading this thread, I feel I have some information to carry on and see how it goes.  I'm certainly not going to commit to anything on the first visit.

dunstonh

They also charge a % comission or a fixed fee.

It is not commission. It is a fee.  As mentioned higher up, commission was banned at the end of 2012.

There is a potential negative of breaking down the advice process into sections in that some of sections, in isolation, become vatable.  Whereas its all within a single fee, then it is non-vatable.

The charge in percentage terms is very high.  It is at typical Wealth Management levels rather than typical IFA (non wealth management) levels.... edit added that the charges list does actually say the fees go to their wealth management rather than IFA side.

The average fee taking into account all amounts and distribution was researched many years ago and found to be 1.8% of the amount invested.    Average means all those that large amounts where % fees tend to get tiered downwards or even put through at 0% and small amounts where higher percentage figures are used.   A lot of firms have a cap and collar and/or tiering to avoid fees becoming indecent on larger amounts.   I cannot see any reference to something like this here.   However, it is a wealth management service.  In my experience, wealth management companies tend not to have those things.

There is a general rule of thumb that wealth management companies are more expensive than IFA (advisory) services.

Albermarle

Bod_1234 said:

Thanks for all the replies on this. The person does refer to themselves as an Independent Financial Advisor DipPFS BA (Hons)

 They also charge a % comission or a fixed fee.

After reading this thread, I feel I have some information to carry on and see how it goes.  I'm certainly not going to commit to anything on the first visit.

Just to repeat what I said earlier. Your OP mentioned a 'general health check' and you seemed surprised that the IFA also wanted to talk about your pensions.
They will be reluctant to offer any advice without knowing a lot of details about you and your finances. 

Aviator1194

Like anything you buy, get at least 3 quotes.
You will be amazed at the variance in prices.

I had one IFA who came to visit me, gave me a price, then in the same breath told me not negotiable, so that was easy, I stood up, walked to the front door, shook his hand and said, "nice to meet you goodbye"

Get everything promised in writing, and put everything you want to achieve in writing and confirmed by the IFA before you proceed.
3% sounds steep to me, but does of course depend on the total assets you want IFA to manage

dunstonh

I had one IFA who came to visit me, gave me a price, then in the same breath told me not negotiable, so that was easy, I stood up, walked to the front door, shook his hand and said, "nice to meet you goodbye"

Be wary of that.   a) The FCA do not like firms that price high and then reduce.  b)  It is ethically unsound.  If a firm is willing to tell you their 5% charge is £25,000 and then find out another IFA is quoting £2,500 but then agree to reduce it then why couldn't they charge £2,500 in the first place.   c)  what if the IFA that refuses to negotiate is the cheapest?      The lower costs ones are more likely to say take it or leave it. 

Aviator1194

dunstonh said:

I had one IFA who came to visit me, gave me a price, then in the same breath told me not negotiable, so that was easy, I stood up, walked to the front door, shook his hand and said, "nice to meet you goodbye"

Be wary of that.   a) The FCA do not like firms that price high and then reduce.  b)  It is ethically unsound.  If a firm is willing to tell you their 5% charge is £25,000 and then find out another IFA is quoting £2,500 but then agree to reduce it then why couldn't they charge £2,500 in the first place.   c)  what if the IFA that refuses to negotiate is the cheapest?      The lower costs ones are more likely to say take it or leave it. 

This particular IFA was by far the most expensive we had seen, 5% setup

I just didn't like the way that IFA quickly said this is my fee and its non negotiable
That is a very big goodbye from me, no matter who it is.

dunstonh

Aviator1194 said:

dunstonh said:

I had one IFA who came to visit me, gave me a price, then in the same breath told me not negotiable, so that was easy, I stood up, walked to the front door, shook his hand and said, "nice to meet you goodbye"

Be wary of that.   a) The FCA do not like firms that price high and then reduce.  b)  It is ethically unsound.  If a firm is willing to tell you their 5% charge is £25,000 and then find out another IFA is quoting £2,500 but then agree to reduce it then why couldn't they charge £2,500 in the first place.   c)  what if the IFA that refuses to negotiate is the cheapest?      The lower costs ones are more likely to say take it or leave it. 

This particular IFA was by far the most expensive we had seen, 5% setup

I just didn't like the way that IFA quickly said this is my fee and its non negotiable
That is a very big goodbye from me, no matter who it is.

Anyone charging 5% for routine advice is taking the P anyway (unless it was just £10k to be invest).   There are too many greedy firms out that charging those sorts of levels.

Aviator1194

dunstonh said:

Aviator1194 said:

dunstonh said:

I had one IFA who came to visit me, gave me a price, then in the same breath told me not negotiable, so that was easy, I stood up, walked to the front door, shook his hand and said, "nice to meet you goodbye"

Be wary of that.   a) The FCA do not like firms that price high and then reduce.  b)  It is ethically unsound.  If a firm is willing to tell you their 5% charge is £25,000 and then find out another IFA is quoting £2,500 but then agree to reduce it then why couldn't they charge £2,500 in the first place.   c)  what if the IFA that refuses to negotiate is the cheapest?      The lower costs ones are more likely to say take it or leave it. 

This particular IFA was by far the most expensive we had seen, 5% setup

I just didn't like the way that IFA quickly said this is my fee and its non negotiable
That is a very big goodbye from me, no matter who it is.

Anyone charging 5% for routine advice is taking the P anyway (unless it was just £10k to be invest).   There are too many greedy firms out that charging those sorts of levels.

Quite right, it was for £300,000 he wanted 5% setup fee, I noticed he parked his flash car with flash personal number plate a good few doors down the road :-)

aroominyork

dunstonh said:

They also charge a % comission or a fixed fee.

It is not commission. It is a fee.  As mentioned higher up, commission was banned at the end of 2012.

What difference does it make in practice? You give the man/woman 3% of your money either way.