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?? IFA concerns
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ipri
Posts: 649 Forumite
Hi...as some of you know ...I have taken on an IFA...fee based...have signed "letters of authority"...presumibly so he can get info to advise better..have got letter today from Fidelity ( invested with old ifa 6yrs ago...havnt seen him since).....saying old advisor not recieving "ongoing advice"commission anymore..but new ifa will get paid comm. for ongoing advise.
Question.....has old ifa been getting money despite not seeing him for 6 yrs?
Will new ifa only get comm. despite having nothing to do with this investment arrangement??..if so this seems to be new ifa helping himself to somebodys money!!?
Many thanks Ian
Question.....has old ifa been getting money despite not seeing him for 6 yrs?
Will new ifa only get comm. despite having nothing to do with this investment arrangement??..if so this seems to be new ifa helping himself to somebodys money!!?
Many thanks Ian
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Comments
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Hi...as some of you know ...I have taken on an IFA...fee based...have signed "letters of authority"...presumibly so he can get info to advise better..have got letter today from Fidelity ( invested with old ifa 6yrs ago...havnt seen him since).....saying old advisor not recieving "ongoing advice"commission anymore..but new ifa will get paid comm. for ongoing advise.
Question.....has old ifa been getting money despite not seeing him for 6 yrs?
The 1.5% annual management fee on funds includes a 0.5% trail commission which goes to the servicing adviser for ongoing advice. Yes your old IFA is probably receiving this annual commission despite doing nothing for you. He will also have received his initial commission.Will new ifa only get comm. despite having nothing to do with this investment arrangement??..if so this seems to be new ifa helping himself to somebodys money!!?
As your old IFA is doing nothing for you as far as ongoing advice is concerned I would not be bothered that he loses that 0.5% trail commission. If your new IFA is going to actually provide you with ongoing advice and therefore earn his money why shouldn't he get the commission? Presumably if the old IFA had been providing a decent service you would not be looking at a new IFA.0 -
thanks...We were quoted a fee .."all inclusive"...new ifa has nothing to do with arranging the fund...we dont want to change the fund...Does his comm. only kick in if/when he advises us to move it
also could we have halted the old ifas comm for non existing advice?...sorry if 2 post come at once!! ian0 -
thanks...We were quoted a fee .."all inclusive"...new ifa has nothing to do with arranginf the fund...we dont want to change the fund...Does his comm. only kick in if/when he advises us to move it
If your new IFA is now the servicing adviser he will get the commission whether you move the fund or not.also could we have halted the old ifas comm for non existing advice?...sorry if 2 post come at once!! ian
Not as far as I know. The management fee is still 1.5% to you. The trail commission of 0.5% goes to the servicing adviser - if no servicing adviser Fidelity probably keep it.0 -
Again thanks.....who actually pays the comm money? ian0
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The fund manager as far as I know.0
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You cannot cease the trail commission. An agent is allocated and to be an agent you have to be authorised and regulated by the FSA.
If you dont want the new IFA to be your adviser (why employ them if not?) then you can transfer the ISA to a fund supermarket that rebates some of the commission. Even then though they will keep some of it.we dont want to change the fund...Does his comm. only kick in if/when he advises us to move it
You dont have to change the fund. Instead of the old adviser being paid, the new one is. There is no difference for you and no difference on your holding.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.0 -
There are a lot of crap IFAs out there who will sell you something and then vanish never to be seen again. A decent advisor (whether independant or multi-tied) should be offering you annual reviews at the very least to ensure that your situation hasn't changed...0
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We are trying to get money back from our pensions due to our ex-IFA giving us dodgy advice. We have had fantastic advice from Dunston who i would recommend wholeheartedly to everyone. He gives you all the information you need and has helped us through the process of sorting out all our pensions.0
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