Cancelling pensions advisor

AFLP

Hello, I recently signed up with a pensions and financial advisor but then changed my mind before I moved any money across to them to manage. They are now saying that they will need payment for the time which they spent with me and for any admin carried out on my behalf. I’m wondering whether I am obliged to pay their fees which may be significant? I do feel sorry that I back tracked at a very late stage, but I was worried about what I was reading and panicked removing their authority from my accounts just prior to transfer.  Does anyone have advice on what is reasonable to do under the circumstances?

Exodi

I don't think there's nearly enough detail here. Who are they and what does your contract say with them say?

You mentioned they were moving your money across to themselves to manage, is that right?

It reads as if you've changed your mind at the 11th hour after a plan had already been discussed and agreed?

Stubod

Without more detail as to what you originally agreed it is difficult to comment, but if you had a meeting with them, and they gave you specific advice, (which it sounds like they did), then yes, you will probably have to pay them for their time / work they have done if you decide not to invest with them.

Many years ago when we had our firdt meeting with a FA, they offered either a one off meeting and advice for about £500, but the fee was waived if we chose to invest with them.  

Albermarle

Normally the first meeting ( one hour) is free.
Then the IFA will write to you with their fees to go forward with them.
Did you receive anything like that, and did you agree to them?

If you did and the IFA then started the work, then they will need paying.
Maybe as you pulled out before completion of the work, there will be room for a compromise figure.

dunstonh

They are now saying that they will need payment for the time which they spent with me and for any admin carried out on my behalf. I’m wondering whether I am obliged to pay their fees which may be significant?

Not enough detail but the probability is that you will owe the money if the recommendation was made.

Ever since advisers went fee-based, you have been paying the adviser for the advice.    Not the financial product you buy.     This is why most products have no initial charges any more.

It is very common for advisers to give a period of time at no cost.  Sometimes an hour.  Sometimes more.   Tey are required to disclose the charges and when you become liable to pay them but cannot charge you before that point.  The point you normally become liable tends to be just before you they write the recommendation report.     This gives you the opportunity to pause without incurring a cost and reducing the work the adviser has to do.      If you cancel after the advice is given, then it's too late.    The adviser has done their job.    It would be like refusing to pay after a decorator has painted your room.    

Getting to the report writing stage has probably had around 6-10 hours of work.  Pressing the buttons to input the application is about 5-15 minutes.  

It would help if you could clarify if they had written their advice report at the point you cancelled.   Or if a product had been applied for already.

UncleK

As people have said, it is difficult to be precise, but IMHO they do have a case for charging you.
Did they send you any documents outlining their charges? If that included an initial fee, they might make a case that you have implicitly accepted those charges. That doesn't hold if it's a percentage of investment, but if you haven't already, I would have a close read of anything they have sent that is in small print!