Financial Advisor Fees

magd36

I used a financial advisor to partially transfer a pension and set up a retirement investment account. I paid a one off fee to transfer and they receive an ongoing 0.75% annual fee which I’m ok with. They provide an annual review etc.

What generally happens if I use them to arrange other investments? I think I’ll have to pay a one off fee again but do they also get 0.75% of all new investments or do they get a smaller percentage for new investments. Is it possible they won’t receive any ongoing fee other than the 0.75% of the original investment.

Just wondering what the typical rule is.

magd36

I should add, any investments will be simple and nothing complex or off piste.

dunstonh

What generally happens if I use them to arrange other investments? I think I’ll have to pay a one off fee again but do they also get 0.75% of all new investments or do they get a smaller percentage for new investments. Is it possible they won’t receive any ongoing fee other than the 0.75% of the original investment.

There is no standard across the board.
Some may be greedy. Some not.
Many will not charge for top ups if you already hold sufficient money with them and are on an ongoing servicing basis.
Also, many advisers have tiered charges with ongoing and will lower their charge if the value gets higher.

Just wondering what the typical rule is.

There is no rule.
Also, is yours an FA (sales rep) or an IFA?