Sipp

Eyeopentome

A financial company that I use for managing my Sipp are proposing a change from the AJ Bell platform to the Soderberg and Partners platform but was also informed that Soderberg and Partners had bought a 20% stake in their company. They have said that this proposal has been checked with the Financial authorities and there is no conflict of interest.

Is this normal, could there be a conflict of interest?, my Sipp has done reasonably well over the last few years with AJ Bell so cannot understand why they would want to change it.

I use a Financial company to obtain their expertise in getting the best out of my Sipp and helping with tax matters.

dunstonh

A financial company that I use for managing my Sipp are proposing a change from the AJ Bell platform to the Soderberg and Partners platform but was also informed that Soderberg and Partners had bought a 20% stake in their company. They have said that this proposal has been checked with the Financial authorities and there is no conflict of interest.

Is this normal, could there be a conflict of interest?

If the firm is an FA or is moving to an FA model, rather than an IFA, then there will be no conflict, as that is the nature of an FA. i.e., restrictions on services, the most common of which is limiting offerings to the linked company's products and services.

Söderberg & Partners is a platform, investment and capital partner to adviser firms, which can remain independent if they choose. However, it would be hard for an IFA to continue to work on that basis as an IFA has to carry out research from the marketplace and restricted offerings are rarely the best value for money.

However, for FAs, it is normal and expected and is just another restriction.

If there are any restrictions on the marketplace, products, or investments, a firm may not refer to itself as an IFA and must be an FA instead.

 my Sipp has done reasonably well over the last few years with AJ Bell so cannot understand why they would want to change it.

None of that is down to AJ Bell. And to be honest, AJ Bell is not the most cost-effective platform available to IFAs. It is typically at the better end, but there are other lower-cost options that are also whole of market. Cost is not the only issue, though. Software, functionality, wrappers, etc. are other considerations.

Eyeopentome

The company I use is a IFA company.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/81880064#Comment_81880064

If they are staying as an IFA, then you need to be on guard as they are required to be whole of market and that means comparing their in-house option with the wider market and being able to show that their in-house option is better than the marketplace.

So, check for charges differences. Platform costs have come down a lot in recent years. So, you would expect the same or lower from AJ Bell. Same with investment costs. So, any move to increase costs would suggest its more about them than you.

Albermarle

There was a similar thread from a few months ago.

Financial Advisor Planning to Move to New SIPP Platform? — MoneySavingExpert Forum

Eyeopentome

Hi yes I did see the thread from a few months ago but there was no conclusion.

They IFA company I am using said that the charges will be going up slightly if I move over to Soderberg and Partners 

I will ask my provider a few questions

Rattusnorvegicus

you can always keep an account at A J Bell, and transfer over funds from Soderberg if you want lower fees, or more control.

Just because your paying money into a DC pot, doesnt mean it has to stay there.

It takes me ages to persuade people to transfer stuff out of nest. i think their 1.8% charge on contribs is outrageous.

dunstonh

They IFA company I am using said that the charges will be going up slightly if I move over to Soderberg and Partners 

And their justification for paying more is?

If they were FAs, they wouldn't need justification. As they are IFAs, they have to justify why this is better than your existing arrangement and that it's better than anything else available.

Rattusnorvegicus

We should at this point remember Raven Thorogood III. Formerly a Hollywood star, in 1999 Raven ranked among the top 22 brokers in Wall Street. His stock index, MonkeyDex, soared with an impressive 213% gain, outperforming most seasoned brokers in the game.

Raven invested in 10 internet companies and outsmarted the majority of experienced brokers in the room. 

Raven was a chimpanzee. 

It was the following 3 years that made me realise chimpanzees make the best stock brokers.

Ever since Mr Goxx a hamster outperformed Warren Buffet, i have a hamster, and trust my portfolio to my hamster 😁

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81882816#Comment_81882816

However according to the ads that keep popping up on some internet sites I use, AI trading bots have made more than a 1000% profit in just 6 months. So better than chimpanzees even.

Rattusnorvegicus

https://forums.moneysavingexpert.com/discussion/comment/81883281#Comment_81883281

Its not as fun and personable though is it 😁