Sipp - Execution Only?

kmp_2

I have a large amount of money invested in a James Hay SIPP. This has been with the involvement of an IFA. Unfortunately, due to the actions of the IFA, the fund has been subjected to unauthorised charges. James Hay have acted correctly throughout. I now need to consider whether to remain with James Hay or change to another SIPP provider, whether on a managed or execution only basis. Things I need to consider are:

Will this be a straightforward transaction?

Will there be any exit and/or set up charges?

Any advice regarding 'managed' versus 'execution only' would be gratefully received.

As I feel completely disillusioned with the pensions industry, how do I go about finding an IFA I can trust and who will provide me with complete honest and impartial advice.

dunstonh

Will this be a straightforward transaction?

Yes.

Will there be any exit and/or set up charges?

Not usually. There may be a small set up charge with the new provider, depending on whom you choose and how you do it. £250 ish maybe. You may prefer just to change the servicing rights to another IFA and leave it where it is.

Any advice regarding 'managed' versus 'execution only' would be gratefully received.

You basically have 3 options. 1 - Do it yourself under execution only. This is the cheapest but you have no advice given and no come back on mistakes. You select your own investments, place them yourself and manage switches etc yourself. If you have the time and the inclination, then this may be the best option for you. 2 - Use an IFA to set it up but agree to no servicing. ie, once set up, you do servicing (switches, rebalancing etc). 3 - Use an IFA to set up and service.

If you were to go with option 3, you should get in writing a fee agreement, signed by both the IFA and you, and it should set out what is agreed to be done with that fee. i.e. if you want a monthly report on your holdings (for example, around a 10 page report on the funds/shares, performance, changes, special offers on funds etc), then you should agree a fee for that. Ideally, you want a partner/owner/director IFA in this case as they will be there all the time rather than an employed IFA who may move around. Partner/Owner IFAs have more personal financial liability than employed/director IFAs so you may find the quality is a little better. When mistakes have to be paid out of your own pocket and you havent got a company pay them, you would expect a bit more care. Also, get an IFA experienced in fund research and pensions. Enquire what you would get for the money on the report side. Perhaps a sample report.

Paying charges is all about getting value for money. Its not about getting the cheapest. If you dont get value for money, or you don't see the value for money in what service you are receiving, then you go elsewhere.

IFAs are like shops, some good, some bad, some cheap, some expensive (repeating from another recent thread). Also, some will specialise in areas, others will do everything. So dont get disillusioned because of the actions of one individual. If he was taking unauthorised charges, surely you are talking about theft?

whiteflag_3

hi kmp

Soory to hear about your problems

Can you clarify what the unauthorised charges were?

Then we might be able to give some views on what part James Hay had to play and whether you need to move away.

EdInvestor

KMP

What is your money invested in?

Are you happy about the way it is invested?

How much help do you feel you need from an IFA and what kind of help?

There are plenty of SIPPs which are cheaper than James Hay