IFA - What Mistakes Are Acceptable, If Any?

GSP

I have had my IFA for five years now, and never used anyone else.

There have been a few occasions where an error has occurred and I’ve spotted it and he has corrected with an apology.
After a review last week with a lot of changes to investments, I’ve just noticed another one.

I have pre and post retirement funds and the same investments (around 16) have been used for both, or so I thought. Again these are new investments so have only been running for a week or so.

On the pre retirement fund there is Royal London Sustainable Managed Growth Trust C Acc, which is correct. But on the post retirement fund it is Royal London Sustainable Managed INCOME Trust C Acc.
It is a different investment as it has different price.

There isn’t a large figure on this incorrect account, but that’s not the point. Because of errors in the past, I monitor my funds just about every day as I have little confidence all is okay.

I know people make mistakes, but just what is ‘acceptable’ in this case?
He is retiring in a year or so, maybe sooner and I won’t want to go the company he advises. He’ll probably make a lot of money for passing on my funds to another individual, or company.

tacpot12

As he is about to retire, it would be sensible to consider whether you want to continue to use an IFA, and if you do wish to do so, whether you want to go to the trouble of selecting an IFA you want, rather than being passed to a firm who you have had no hand in selecting. I would move quickly if you want to move. 

Marcon

GSP said:

I have had my IFA for five years now, and never used anyone else.

There have been a few occasions where an error has occurred and I’ve spotted it and he has corrected with an apology.
After a review last week with a lot of changes to investments, I’ve just noticed another one.

I have pre and post retirement funds and the same investments (around 16) have been used for both, or so I thought. Again these are new investments so have only been running for a week or so.

On the pre retirement fund there is Royal London Sustainable Managed Growth Trust C Acc, which is correct. But on the post retirement fund it is Royal London Sustainable Managed INCOME Trust C Acc.
It is a different investment as it has different price.

There isn’t a large figure on this incorrect account, but that’s not the point. Because of errors in the past, I monitor my funds just about every day as I have little confidence all is okay.

I know people make mistakes, but just what is ‘acceptable’ in this case?
He is retiring in a year or so, maybe sooner and I won’t want to go the company he advises. He’ll probably make a lot of money for passing on my funds to another individual, or company.

I think the reality is surely whether the mistakes impact on your level of confidence in an adviser. If they do, then for your particular relationship those mistakes probably aren't acceptable, whereas someone else might be less anxious. Daily monitoring of your funds because of 'past errors' suggests the relationship broke down some while ago.

If he's shortly to retire, then clearly now is the moment to choose someone else.

Cus

imo if you are concerned enough to post initially then you have to find another IFA. It's not a divorce, it's a service, and we all change services when we want.

dunstonh

Considering the number of times you keep coming back to the board to post about your adviser and the relationship, I think it is time for you to end the service for both of your benefits.

GSP

dunstonh said:

Considering the number of times you keep coming back to the board to post about your adviser and the relationship, I think it is time for you to end the service for both of your benefits.

That’s the thing, because I have never had another advisor, I have nothing to measure against.

We are all human, but I was sort of putting it out there just how many times ‘is acceptable’ for your IFA to !!!!!! it up in some way?

Thanks

cfw1994

GSP said:

dunstonh said:

Considering the number of times you keep coming back to the board to post about your adviser and the relationship, I think it is time for you to end the service for both of your benefits.

That’s the thing, because I have never had another advisor, I have nothing to measure against.

We are all human, but I was sort of putting it out there just how many times ‘is acceptable’ for your IFA to !!!!!! it up in some way?

Thanks

If you have lost your belief in your advisor to the point you “monitor my funds just about every day”, it is very clearly time to drop them like a stone and move on.
Spend some energy figuring out whether you would be better managing them yourself, or spend some time investigating (interviewing) alternative IFAs.

SpringermadMR

Our IFA of 3 years just sold out to a wealth management company, in the letter announcing this it made no mention of becoming restricted. Our new "IFA" on first contact with us, just sent a pack to sell our 32 + funds/investments to put them into two other funds and a new platform with a % increase hidden in the paperwork and also a change to restricted. So beware of IFA's selling their business, it certainly won't be in your best interests.

dunstonh

Our IFA of 3 years just sold out to a wealth management company, in the letter announcing this it made no mention of becoming restricted. Our new "IFA" on first contact with us, just sent a pack to sell our 32 + funds/investments to put them into two other funds and a new platform with a % increase hidden in the paperwork and also a change to restricted. So beware of IFA's selling their business, it certainly won't be in your best interests.

It is certainly an issue that is occurring but plenty of IFAs sell their business to other IFAs.   If you have one that doesn't then just move to another company.     It also hits the retiring adviser in the pocket as anyone not moving to the new method reduces the payment the retiring adviser gets.

[Deleted User]

SpringermadMR said:

Our IFA of 3 years just sold out to a wealth management company, in the letter announcing this it made no mention of becoming restricted. Our new "IFA" on first contact with us, just sent a pack to sell our 32 + funds/investments to put them into two other funds and a new platform with a % increase hidden in the paperwork and also a change to restricted. So beware of IFA's selling their business, it certainly won't be in your best interests.

Its a fundamental problem for anyone considering using IFAs for ongoing portfolio management. 

I assume  that every time people are forced to switch, there are upfront costs as well as time and effort in selecting a new advisor, unnecessary investment changes, etc. 
 

That time could be better spent understanding how to get rid of advisors altogether so the risk of them selling you goes away altogether. Given simple and superbly diversified products available on the market nobody should be using a redundant management layer  between you and your money.  Not for day to day management. Suppose if you don’t know percentages  and can’t read then you don’t have much choice but in all other cases read a book and fire your advisor. 

GSP

dunstonh said:

Our IFA of 3 years just sold out to a wealth management company, in the letter announcing this it made no mention of becoming restricted. Our new "IFA" on first contact with us, just sent a pack to sell our 32 + funds/investments to put them into two other funds and a new platform with a % increase hidden in the paperwork and also a change to restricted. So beware of IFA's selling their business, it certainly won't be in your best interests.

It is certainly an issue that is occurring but plenty of IFAs sell their business to other IFAs.   If you have one that doesn't then just move to another company.     It also hits the retiring adviser in the pocket as anyone not moving to the new method reduces the payment the retiring adviser gets.

Think there was a post back a few months ago about a retiring IFA passing over clients to a company called True Potential, and the IFA was getting 8% for each of the clients successfully handed over.
Sounds rather a lot to me!