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Pension advise

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Last year my pension advisor came to my house for his yearly chat and he said that hewill have to put his % commission up from 0.7% to 0.9% because of new government guidelines saying that all his policy holders must be paying the same %
Has anyone else been asked to do this ? 
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  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    Vote with your feet if you consider that the fees you are paying don't add sufficient value
  • Its not the actual fee % I was just trying to find if it is government guidelines that he has to put the % up or is he just saying that so he can put my rate up ?
  • Marcon
    Marcon Posts: 14,431 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Last year my pension advisor came to my house for his yearly chat and he said that hewill have to put his % commission up from 0.7% to 0.9% because of new government guidelines saying that all his policy holders must be paying the same %
    Has anyone else been asked to do this ? 
    Or maybe he could reduce his commission to 0.7% for everyone?

    Ask him for a link to these new 'guidelines'.

    Guidelines aren't rules and the government doesn't set rules for the finance services industry - the FCA (normally) does. Sounds as if he might be trying to capitalise on this (which is nothing to do with pension policies): https://www.abi.org.uk/products-and-issues/topics-and-issues/important-rule-changes-to-the-pricing-of-home-and-motor-insurance/


    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • Albermarle
    Albermarle Posts: 27,871 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Last year my pension advisor came to my house for his yearly chat and he said that hewill have to put his % commission up from 0.7% to 0.9% because of new government guidelines saying that all his policy holders must be paying the same %
    Has anyone else been asked to do this ? 
    I have not seen this mentioned on this forum before, or seen it in any news, so I suspect he is talking BS.
    Ask him where you can see this new guidance .
  • dunstonh
    dunstonh Posts: 119,679 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 17 July at 3:25PM
    Last year my pension advisor came to my house for his yearly chat and he said that hewill have to put his % commission up from 0.7% to 0.9% because of new government guidelines saying that all his policy holders must be paying the same %
    Complete and utter BS but based on a kernel of truth.

    First of all, the Governement hasn't issued any guidelines.  The Government doesn't get involved.  The FCA is the regulator of financial services.

    There has been no regulatory changes saying that charges must be the same.  Indeed, the opposite.  

    Indeed, the recent trend is for tiered charging and cap and collars.    So, different rates for different amounts.  Plus, further encouragement for greater client segmentation (which again, can lead to differential charging).

    The average ongoing advice charge is 0.77% across all client segments.  Some maybe 0.50% and some maybe 1.00% (that is the more typical ballpark range with percentages)

    The kernel of truth is consistency of approach in that client segment.  i.e. if you have 50 clients in a particular client segment, then it would expect them to be charged the same tarrif.   However, that tariff can have different charging tiers, and you can still do discounts where appropriate.  e.g. family member groups.




    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • kempiejon
    kempiejon Posts: 824 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Its not the actual fee % I was just trying to find if it is government guidelines that he has to put the % up or is he just saying that so he can put my rate up ?
    If he is just saying that, another poster has called BS, will it change your opinion of continuing to do business with him?
    Of course he could just be confused, I preferred the idea of bringing all the commissions down to 0.7%.
  • wjr4
    wjr4 Posts: 1,306 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    It’s not commission, it’s an annual adviser fee 
    I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.
  • LHW99
    LHW99 Posts: 5,235 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Is it an IFA or an FA?
    FA's seem to be a law unto themselves with charges, more so than IFA's (IMO)
  • Ibrahim5
    Ibrahim5 Posts: 1,269 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    edited 18 July at 1:07AM
    Not all thieves carry swag bags. Some come to your house in a suit and ask for permission.
  • DT2001
    DT2001 Posts: 838 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    My IFA’s firm had an external company review their charges and investment strategies. They wanted to be consistent and needed to increase charges due to rising business costs and regulatory requirements. 1% pa ongoing advice charge with a cap of £10k. Up from 0.5%. This was potentially offset in part by moving to a new platform and lower cost global tracker funds. It was the tipping point for me having recently been moved to a new advisor within the firm. I am now invested pretty much as they suggested but through ETFs. The savings , £1k p.m., are put aside to cover one off consultations for estate planning etc (which would have, understandably, been extra anyway). It was nerve jangling to start with but I have written down my plan and remind myself that the funds are the same as the IFA was recommending so performance will be similar. I have invested long term previously, under my own steam, so believe I will stick to my simple plan.
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