Ascot Lloyd and Avellemy (now Ascot Lloyd)

Langtang

Hello all,

I have my investments with Fidelity, through my IFA - Ascot Lloyd. The vast majority of my investments are through funds under the Avellemy name. I notice that Ascot Lloyd have now bought out Avellemy and the funds have been renamed - e.g.  IFSL Ascot Lloyd 5 C Income (Restricted Fund) replaces the old Avellemy named fund.

What I wanted to ask was regarding my investments in these funds. If they are owned by Ascot Lloyd now, is this still an independent finance arrangement? 

It seems to me that Ascot have invested my funds in a wholly owned fund of their own.

what would happen if Ascot were to fold, would those funds fold also? 

What if I wanted to change IFAs in the future, would it be difficult (or expensive) to extract my money from those funds - I assume I would not be allowed to keep money invested in a restricted fund?

Regards

Eyeful

1. As you are already paying for financial advice, I would ask them face to face for answers to all these questions. They are best placed to supply the answers.

2. The first question I would ask is are you still an "Independent Financial Advisor (IFA)"
or are you now a "Restricted Financial Advisor"

3. Find out what the total cost you are now going to be paying them.
Then find out if those charges are low,er average or higher than other IFA's.

dunstonh

I notice that Ascot Lloyd have now bought out Avellemy and the funds have been renamed 

They have bought them out as it was already in-house.   They have just rebranded.

What I wanted to ask was regarding my investments in these funds. If they are owned by Ascot Lloyd now, is this still an independent finance arrangement? 

They were owned by them before.  From the outside and with no knowledge of internal workings, it just appears to be another step to being able to earn from every part of the process.

Historically, IFAs only earned from the advice side.  But if I(FA) owned the MPS and the platform, then they could earn in all three parts.  Just as St James Place do.  Quilter are also moving to that and dropping IFA status as have many others.  At some point, the firms that do this typically drop their IFA status.

Remember that Ascot Lloyd is a consolidator firm.   It buys other firms to integrate into them.   Its a very different busineess model to your "independent" IFAs. 

It seems to me that Ascot have invested my funds in a wholly owned fund of their own.

Correct.

what would happen if Ascot were to fold, would those funds fold also? 

Unit-linked funds used and regulatory capital requirements will cover each area separately.   A managed disposal of the funds would be carried out long before they folded.

What if I wanted to change IFAs in the future, would it be difficult (or expensive) to extract my money from those funds - I assume I would not be allowed to keep money invested in a restricted fund?

Modern products and invesmtents via IFAs have no tie in.