IFA - Annual Review

ggmf

I had my annual review with my IFA 2 weeks ago, at our house. While I await his report and recommendations to changes to my portfolio that we discussed, I have today received a letter from him advising that his business was acquired in October 2023 by Ascot Lloyd, no mention of this was made at the review meeting. I can see that  he may have been unable to mention the acquisition, but it's still slightly disappointing.

I found an old thread (https://forums.moneysavingexpert.com/discussion/6303087/ifa-just-been-bought-by-ascot-lloyd?utm_source=community-search&utm_medium=organic-search&utm_term=ascot+lloyd) and not a lot else so far (apart from their website), I'm still searching.

My portfolio sits on the Fidelity platform, where the fees seem quite reasonable at present, and the platform seems to do all that I will require.

I guess for now I sit back and see what Ascot Lloyd have to say for themselves and what the arrangements might be going forward, in terms of fee's etc. else I can always look for another IFA (and incur costs?) or even decide to DIY.

Any thoughts on Ascot Lloyd?

Peterrr

I'd see this as a perfect and guilt-free opportunity to jettison the IFA. Then simply leave the investments where they are with Fidelity, saving yourself a percent or more every year moving forward (think of how much that will add up to over a decade or two!)

tacpot12

Don't forget that if they are charging 1% higher fees than you would incur by DIY, and your investment return is 7%, you have increased your return by nearly 15%!

Marcon

ggmf said:

I had my annual review with my IFA 2 weeks ago, at our house. While I await his report and recommendations to changes to my portfolio that we discussed, I have today received a letter from him advising that his business was acquired in October 2023 by Ascot Lloyd, no mention of this was made at the review meeting. I can see that  he may have been unable to mention the acquisition, but it's still slightly disappointing.

I found an old thread (https://forums.moneysavingexpert.com/discussion/6303087/ifa-just-been-bought-by-ascot-lloyd?utm_source=community-search&utm_medium=organic-search&utm_term=ascot+lloyd) and not a lot else so far (apart from their website), I'm still searching.

My portfolio sits on the Fidelity platform, where the fees seem quite reasonable at present, and the platform seems to do all that I will require.

I guess for now I sit back and see what Ascot Lloyd have to say for themselves and what the arrangements might be going forward, in terms of fee's etc. else I can always look for another IFA (and incur costs?) or even decide to DIY.

Any thoughts on Ascot Lloyd?

Do you have the skills and knowledge to DIY?

If you have been pleased with what your IFA has accomplished for you thus far, and he can continue to look after your account (which presumably he can albeit via Ascot Lloyd?), ask for a detailed breakdown of what the costs will be/exactly what services will be provided, using your current contractual arrangement as the basis on which you would like the information to be presented to you.

You say you understand that he might not have been able to mention the sale of his business when you met two weeks ago but are still 'disappointed'. I don't think you can have it both ways - if you recognise it may still have been confidential, what else could he have done? But it's clear you are dismayed, so say something and that way at least you'll have clarity.

dunstonh

I have today received a letter from him advising that his business was acquired in October 2023 by Ascot Lloyd, no mention of this was made at the review meeting. I can see that  he may have been unable to mention the acquisition, but it's still slightly disappointing.

Probably under embargo from the buying company.  The general rule in business is not to announce things like this until contracts agreed, signed and both sides agree on timescales.

Alscot Lloyd are IFAs.  So, at least he has done the more honourable thing and not sold out to SJP or True Potential.  Both of which would have earned him more.

I guess for now I sit back and see what Ascot Lloyd have to say for themselves and what the arrangements might be going forward, in terms of fee's etc. else I can always look for another IFA (and incur costs?) or even decide to DIY.

Often IFAs will take over a reasonably sized portfolio at low or no initial cost if you are using them for ongoing servicing.

cfw1994

Peterrr said:

I'd see this as a perfect and guilt-free opportunity to jettison the IFA. Then simply leave the investments where they are with Fidelity, saving yourself a percent or more every year moving forward (think of how much that will add up to over a decade or two!)

Have to say I agree 100% with this. 

That said, maybe @ggmf doesn’t feel able to take things over, so it is entirely up to them, of course.

Leaving off something like that is rude at the least, and as said, very disappointing.  I am sure they could have brushed it away with “nothing to worry about, the holding company is still an IFA & I am still your advisor”, but now it is an annoying niggle.   Next question is how old is the advisor (compared with you!) - how will things go if they retire in a year or two, having made their wad of cash from this acquisition, passing you to some new person?

If it was bought last October, then there is zero reason not to mention it.  An embargo wouldn’t continue 6 months AFTER an acquisition 🤷‍♂️

Albermarle

On a practical note, if you did decide to DIY and stay with Fidelity, then probably there would have to be some internal administration involved. AIUI the DIY platform ( Fidelity Personal Investing) has some differences to the Fidelity Platform that advisors use. 

ggmf

Thank you for your replies and comments.

Some more context.

I’m retired with some DB pensions that are in payment, I’ve just started to receive my State Pension,  my Sipp is approx. £400K. My wife is still working and receipt of a very small NHS pension, she is also showing as having a complete NI record for state pension in the future, and currently paying into Nest . Between us, we have instant access savings, cash ISA’s and S&S ISA’s, enough to cover 6 or 7 years of expenses without having to touch my SIPP (hopefully!).

I used my S&S ISA’s as a learning tool, made some mistakes (don’t we all?), went through Covid and it’s currently up 20% from the initial transfer in.

@Peterr – I agree.

@tacpot12 – I agree, I track my platform and advisor costs, its amazing how quickly the low sounding % advisor costs soon total up

@Macron – I believe I have the knowledge but seem to lack the confidence to ‘jump’ away from my IFA. 

@dunstonh – I did check that Ascot Lloyd are IFA’s, one of the first things I did. The letter is dated 2 days post my IFA meeting. All things are relative, but is £400k a reasonable sized portfolio?

@cfw1994 – I agree, the fact that no mention was made where he could have excluded details and just advised that there is nothing to worry about, and I'll receive a letter in due course is disappointing. He is a lot younger than me, and I'm guessing has ambitions of greatness are elsewhere.

@Albermarle – Thank you, I did wonder if there would need to be any adjustments. I do have access, and check the current Fidelity account, but I was unsure if there is any adjustments to the platform or fee’s etc. charged to individual investors rather than ‘professionals’

I'll await Ascot LLoyds communications and go from there. 

dunstonh

@dunstonh – I did check that Ascot Lloyd are IFA’s, one of the first things I did. The letter is dated 2 days post my IFA meeting. All things are relative, but is £400k a reasonable sized portfolio?

Middling.    One IFA in our area has a £250k minimum.   One in the city (only city in the county) has £1m as a minimum.  I expect that with most, it puts you at or just above average.

if you are on a platform that a new adviser uses, then its a lot easier.  If you are on a niche platform that the new adviser can improve on then its more work.   So, that could influence the initial cost. 

wjr4

Peterrr said:

I'd see this as a perfect and guilt-free opportunity to jettison the IFA. Then simply leave the investments where they are with Fidelity, saving yourself a percent or more every year moving forward (think of how much that will add up to over a decade or two!)

What if they need financial planning advice? Not everything is product driven and performance driven.