Ongoing advisor charges

scotslad

I am 55 soon and plan to start taking pension. 25% TF and a monthly income. My pot is 700k.

My question is after my IFA has done the work for me in setting it up can I end the relationship with them and stop the ongoing advisor fees?? They have been charging £200 a month for last 4 years and I have only had 1 meeting with them in that time.

I am very happy with the fund I am in (Prudential series E) and probably wouldnt need ongoing advice after its been set up.

Any advice as £200 a month would be better in my pocket than IFA

dunstonh

My question is after my IFA has done the work for me in setting it up can I end the relationship with them and stop the ongoing advisor fees??

Yes.  Ongoing is optional.

They have been charging £200 a month for last 4 years and I have only had 1 meeting with them in that time.

Since 2018, reviews have had to be "at least annually".   That doesn't mean you have to be seen face to face but should involve a conversation or communication with the adviser checking ongoing suitability etc.

I am very happy with the fund I am in (Prudential series E) and probably wouldnt need ongoing advice after its been set up.

Each to their own.  I wouldn't be.

scotslad

They have been charging £200 a month for last 4 years and I have only had 1 meeting with them in that time.

Since 2018, reviews have had to be "at least annually".   That doesn't mean you have to be seen face to face but should involve a conversation or communication with the adviser checking ongoing suitability etc.

Annual statement posted out once a year and thats it 

I am very happy with the fund I am in (Prudential series E) and probably wouldnt need ongoing advice after its been set up.

Each to their own.  I wouldn't be.

Enlighten me further

dunstonh

Annual statement posted out once a year and thats it 

The platform provides an annual statement.  So, the adviser doesn't need to.   You have grounds to ask for a refund for the years you have not received a review.

cfw1994

dunstonh said:

Annual statement posted out once a year and thats it 

The platform provides an annual statement.  So, the adviser doesn't need to.   You have grounds to ask for a refund for the years you have not received a review.

I wonder how many FAs get away with that.  Bizarre.  Maybe this is SJP, who are expecting a raft of claims for precisely this issue 🙄

Still, ought to be a nice easy claim for a few thousand - good luck, Scotslad👍

dunstonh

I wonder how many FAs get away with that. 

Its hard to say.  The majority of my clients need annual servicing.  So, not doing it is not an option (e.g. bed & ISA, bed & pension, portfolio adjustments, chargeable gains, CGT etc).  You cannot miss a year.     

I suspect its the consolidation firms that hoover up smaller firms that have go the issues (many of them not IFAs any more but bought IFA firms).   They have been hoovering up clients and funds so quickly, I don't know if they would have the resources to service everyone at least annually.

m_c_s

scotslad said:

They have been charging £200 a month for last 4 years and I have only had 1 meeting with them in that time.

Any advice as £200 a month would be better in my pocket than IFA

£10k is already in your IFAs pocket for one meeting.
But it's worse than that. £10K invested sensibly over the last 4 years would probably now be worth £15k. So you effectively don't have £15k.

Roger175

scotslad said:

I am 55 soon and plan to start taking pension. 25% TF and a monthly income. My pot is 700k.

My question is after my IFA has done the work for me in setting it up can I end the relationship with them and stop the ongoing advisor fees?? They have been charging £200 a month for last 4 years and I have only had 1 meeting with them in that time.

I am very happy with the fund I am in (Prudential series E) and probably wouldnt need ongoing advice after its been set up.

Any advice as £200 a month would be better in my pocket than IFA

Forgive me saying this, but I think paying an IFA £200/month for seemingly doing very little is obscene. You appear to have one very mediocre fund (arguably poorly performing fund - assuming I'm looking at the right one). If the IFA recommended you go 100% with this and then has the gall to charge you £200/month for ongoing advice (which he's not even doing), then he must be feeling very smug.