Advice needed: Alltrust SIPP, returning UK resident and adviser fees

scobbieboy

After living in the UAE for around 13 years, I've returned to the UK and am reviewing my existing financial arrangements.

I have an Alltrust SIPP.

My existing adviser is at Harrison Brook. I've been approached about changing my servicing adviser to another adviser who is also associated with Harrison Brook, but whose paperwork names Julian Harris Adviser Network Limited.

My understanding is that the change is necessary because my existing adviser may be unable to advise UK residents. Is this necessarily the case, or could my existing adviser continue to service my SIPP?

The proposed fees are £995 for initial advice and 1% annually for ongoing advice, with additional platform and fund charges taking the estimated total to around 1.3% per annum. I've been told the £995 initial fee is only payable upon the transfer of funds.

I'm trying to establish:

1. Why is a change of servicing adviser necessary now that I'm UK-resident? Could my existing adviser continue to service the SIPP?
2. Is £995 a reasonable initial fee if I'm not necessarily transferring my existing investments?
3. Is an ongoing adviser fee of 1%, on top of platform and fund costs, justified for a SIPP of this size?
4. Should I consider retaining the existing arrangement, changing adviser, or obtaining a one-off independent review instead?
5. What should I check before signing the new adviser's terms of business?

I'm not looking for individual investment recommendations, just independent views on the adviser arrangements, fees and questions I should be asking before proceeding.

Isthisforreal99

First question I'd be asking myself is do I need to be paying someone ti manage it.

Alsi, Q3 you ask "......justified fir a SIPP of this size", but I don't see you mention the value anywhere - which may determine if an adviser is needed?

Marcon

Have you asked your existing advisor?

scobbieboy

https://forums.moneysavingexpert.com/discussion/comment/82178070#Comment_82178070

The value is 100k! I know I have been cautious but badly stung with the initial investment I made whilst in the Middle East with an unregulated adviser!

scobbieboy

https://forums.moneysavingexpert.com/discussion/comment/82178072#Comment_82178072

Not yet for the simple reason of the existing advisor passed be over to this new advisor & therefore I assumed that I was staying with the same company eg Harrison Brook

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82178084#Comment_82178084

Probably the best starting point in terms of establishing what your current advisor's position is in terms of being able to give continued advice.

Linton

The change is necessary because, according to google and the FCA register, Harrison Brook are not authorised to operate in the UK as advisors. They are regulated by Gibralter.

For the other questions IFA charging is usually based in some way on the amount invested.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82178080#Comment_82178080

Perfectly manageble to look after it yourself. Just pick a fund(s) with Vanguard, HL, AJ Bell or whoever and save yourself some money.

scobbieboy

https://forums.moneysavingexpert.com/discussion/6687787/advice-needed-alltrust-sipp-returning-uk-resident-and-adviser-fees

Interesting development following some of the replies. It appears the issue may be that my existing adviser, at Harrison Brook, cannot provide regulated investment advice now that I'm UK-resident, so a UK-regulated adviser is needed.

However, the proposed adviser also works with Harrison Brook, while the paperwork names Julian Harris Adviser Network Limited, and the initial advice fee is £995, on top of an ongoing 1% adviser charge.

I'm trying to understand whether the £995 is genuinely necessary to facilitate the change, or whether it relates to a separate piece of financial advice and investment recommendations.

Has anyone else returning to the UK from the Middle East encountered a similar situation? In particular, were you able to change servicing adviser without transferring your investments or incurring a new initial advice fee?

dunstonh

My understanding is that the change is necessary because my existing adviser may be unable to advise UK residents. Is this necessarily the case, or could my existing adviser continue to service my SIPP?

WIthout knowing the regulatory status of your existing adviser, it is impossible for us to say.

UK authorised firms can deal with UK residents but as you have been a non-resident, its more likely your existing adviser holds permissions/authorisations outside of the UK.

Is £995 a reasonable initial fee if I'm not necessarily transferring my existing investments?

£995 is reasonable. On £100k you would expect 2-3 times that.

Is an ongoing adviser fee of 1%, on top of platform and fund costs, justified for a SIPP of this size?

Smaller values do typically hover around the 1% mark. They taper lower as the value increases. £100k is at the lower end.

Should I consider retaining the existing arrangement, changing adviser, or obtaining a one-off independent review instead?

Typically, one off advice is more expensive than ongoing where you are likely to need ongoing advice. Where you dont need ongoing advice, then one off would likely be better.

What should I check before signing the new adviser's terms of business?

Independent status is really the only thing of note.

scobbieboy

https://forums.moneysavingexpert.com/discussion/6687787/advice-needed-alltrust-sipp-returning-uk-resident-and-adviser-fees

Additional information: I've now checked my latest valuation statement. The Alltrust SIPP is worth approximately £101,000 and holds an Utmost International Isle of Man Executive Redemption Bond, which in turn holds collective investments including Fundsmith and Vanguard LifeStrategy funds.

Does this structure change anyone's view on the proposed £995 initial advice fee and 1% ongoing adviser charge? I'd also be interested to know whether it might be possible to retain the existing arrangement and manage the underlying investments myself, without paying an ongoing adviser fee.

I appreciate that the bond's terms, charges and any tax implications would need checking before making changes.