Should my Financial Adviser Charge For Increasing ISA Payments?

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rugbyleaguesmate
rugbyleaguesmate Posts: 281 Forumite
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in ISAs & tax-free savings
I want to increase my contributions to my stocks and shares ISA (£150 per month currently, want to put it up to £700). My FA who looks after some other stuff for me wants to charge £499 to do it and advised that was he needed to do a financial assessment?

Is this correct? I don't feel comfortable about it.

My ISA is in an openwork rap with a private pension.

please could you advise if I am right to be concerned?

thank you
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  • eskbanker
    eskbanker Posts: 31,047 Forumite
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    If you're proposing to more than quadruple your investment activity then that does sound like a fairly significant change to your finances so if you choose to engage an IFA then I can see why they'd consider that to be worthy of further analysis.

    However, up to you if you wish to have an IFA manage your finances, and even if you do then you can still decide exactly what you want them to do for you and vote with your feet if you choose....
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Why are you looking to put all that extra money (my assumption) in your ISA and not pension? There might be substantial tax advantages to be doing so. Or it might not bea good idea for various reasons.
    If you are confident you know the answer, then why have an IFA at all. If you arent, then £500 is probably a couple of hours worth of time Plus there is the question of what to invest in (same as now or different) and how it might affect your pension investments.
    Maybe you are ready to DIY?
  • SonOf
    SonOf Posts: 2,631 Forumite
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    If you are employing the adviser on an ongoing advice basis then you would not expect to pay for top ups/increments (as they would normally fall under the ongoing servicing costs)

    If you are not employing the adviser on an ongoing basis then you would expect to pay for top ups/increments.
    My ISA is in an openwork rap with a private pension.

    I would be more concerned about that. Restricted FA is not ideal.
    please could you advise if I am right to be concerned?

    Yes if you are paying or ongoing servicing. No if you are not paying for ongoing servicing.
  • rugbyleaguesmate
    rugbyleaguesmate Posts: 281 Forumite
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    Thank you I really appreciate you taking your time to consider and respond to my post.

    My situation is that I have been with my adviser for 15 years or so, I have the remains of an opted out Serps pension and an ISA with him (valuation for both together 80K). There are ongoing annual charges for both of these however the funds have grown 50% since I went with my financial adviser.

    My pension provision is significant, so much so I have warned of over paying into my pension.

    Going it alone, interesting......keep talking!
    6.72kw Pv Ja Solar 280w * 24 panels, Solar Edge inverter, South facing no shading.
    South Lake District, delightful view of Morecambe Bay. Not Saving up for a battery too expensive:j:mad::hello:

    July Solar target 769kw
  • SonOf
    SonOf Posts: 2,631 Forumite
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    My situation is that I have been with my adviser for 15 years or so, I have the remains of an opted out Serps pension and an ISA with him (valuation for both together 80K). There are ongoing annual charges for both of these however the funds have grown 50% since I went with my financial adviser.

    But are you paying anything towards the adviser?
    You would expect platform/provider charges and fund charges but is there an adviser charge on top of that?

    If not, then the adviser is quite right to be charging you for doing work. Otherwise they would not be paid.
  • rugbyleaguesmate
    rugbyleaguesmate Posts: 281 Forumite
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    SonOf wrote: »
    But are you paying anything towards the adviser?
    You would expect platform/provider charges and fund charges but is there an adviser charge on top of that?

    If not, then the adviser is quite right to be charging you for doing work. Otherwise they would not be paid.

    Just checked statements I pay both platform and adviser fees
    6.72kw Pv Ja Solar 280w * 24 panels, Solar Edge inverter, South facing no shading.
    South Lake District, delightful view of Morecambe Bay. Not Saving up for a battery too expensive:j:mad::hello:

    July Solar target 769kw
  • SonOf
    SonOf Posts: 2,631 Forumite
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    rugbyleaguesmate wrote: »
    Just checked statements I pay both platform and adviser fees

    In which case, you should be unhappy with that. Add it to the list of things that are wrong here.
    1 - You are using a restricted FA. If you need advice, you should use an IFA.
    2 - What are you paying ongoing adviser fees for if the adviser is not providing ongoing services. The majority of advisers will include top ups in the ongoing service arrangement.
  • rugbyleaguesmate
    rugbyleaguesmate Posts: 281 Forumite
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    just gone through my statement adviser charges of £800 for last year for my pension and ISA (I had one phone call)
    6.72kw Pv Ja Solar 280w * 24 panels, Solar Edge inverter, South facing no shading.
    South Lake District, delightful view of Morecambe Bay. Not Saving up for a battery too expensive:j:mad::hello:

    July Solar target 769kw
  • SonOf
    SonOf Posts: 2,631 Forumite
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    rugbyleaguesmate wrote: »
    just gone through my statement adviser charges of £800 for last year for my pension and ISA (I had one phone call)

    In your shoes, I would be contacting that adviser telling them that you are not happy that they are charging you on top of that.

    As I said, the majority of advisers will do top-ups, withdrawals, adjustments and any other admin related issues as part of their ongoing service. And that is understandable as if the adviser is not doing those things, then what the hell are you paying them for.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    edited 7 October 2019 at 6:57PM
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    SonOf wrote: »
    In which case, you should be unhappy with that. Add it to the list of things that are wrong here.
    1 - You are using a restricted FA. If you need advice, you should use an IFA.
    2 - What are you paying ongoing adviser fees for if the adviser is not providing ongoing services. The majority of advisers will include top ups in the ongoing service arrangement.

    3. 50% growth in 15 years is a really poor return.

    I didn't phrase that right. It's a SHOCKINGLY bad return that verges somewhere between negligence and theft. A combination no doubt of very poor funds and very high charges has robbed you. If you just put the money ina savings account it would have grown that [STRIKE]much[/STRIKE] little. Its barely matched inflation.
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