Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • billie25
    • By billie25 10th May 18, 3:21 PM
    • 13Posts
    • 1Thanks
    billie25
    Pension Portfolio
    • #1
    • 10th May 18, 3:21 PM
    Pension Portfolio 10th May 18 at 3:21 PM
    Hi,

    I have a pension portfolio administered by an independent financial advisory company. The fee I pay of 1% per annum includes a quarterly review every year. In March I received a letter from them telling me that, "due to an administrative error" the quarterly reviews due in May and August 2017 were not carried out. With their apologies for this error, they offered me a refund equalling the cost of the fees I had been charged for six months. As I had not responded to the letter, my advisor called to see me yesterday to explain that it really isn't possible to evaluate how much I might have gained, or indeed lost, had the reviews been carried out. Not one to cause a fuss and not really very clued up on these matters, I agreed to confirm that I would accept the refund "in full and final settlement" and that the "offer is made without prejudice".

    Just before sending off my reply I would appreciate any opinions regarding whether the recompense is appropriate for the situation.

    Thanks in anticipation.
Page 1
    • MightyMythop
    • By MightyMythop 10th May 18, 3:30 PM
    • 32 Posts
    • 18 Thanks
    MightyMythop
    • #2
    • 10th May 18, 3:30 PM
    • #2
    • 10th May 18, 3:30 PM
    It wouldn't have been possible to evaluate the portfolio on gains or losses as the reviews weren't carried out and therefore no changes to your portfolio of funds were made and consequently no idea of the performance of any potential different funds (at least that's where I think the IFA is coming from).

    I'd personally say that a quarterly review is OTT anyway, six months or annually is generally sufficient and I think the offer of a fees reimbursement is adequate given the circumstances.
    • bostonerimus
    • By bostonerimus 10th May 18, 3:35 PM
    • 1,818 Posts
    • 1,167 Thanks
    bostonerimus
    • #3
    • 10th May 18, 3:35 PM
    • #3
    • 10th May 18, 3:35 PM
    Take the refund and look into reducing that 1% fee to something less than 0.5%.
    Misanthrope in search of similar for mutual loathing
    • dunstonh
    • By dunstonh 10th May 18, 4:05 PM
    • 92,581 Posts
    • 59,890 Thanks
    dunstonh
    • #4
    • 10th May 18, 4:05 PM
    • #4
    • 10th May 18, 4:05 PM
    The general guide is to refund the charge plus interest. It is not possible to second guess what hypothetical outcomes may have occurred.

    Quarterly reviews are overkill and unnecessary. Maybe agree with them to do them annually at 0.5% like most other advice firms.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • billie25
    • By billie25 10th May 18, 6:47 PM
    • 13 Posts
    • 1 Thanks
    billie25
    • #5
    • 10th May 18, 6:47 PM
    • #5
    • 10th May 18, 6:47 PM
    Thanks for the replies. I do appreciate the input and will certainly look into getting the fees reduced. I was paying 1% fees before the quarterly reviews came about so they said I could have them FOC!! The pension seemed to be performing okay so just accepted. I'm paying for my ignorance, I suppose.

    Thank you all again - it's lovely to know you are there.
    • bostonerimus
    • By bostonerimus 10th May 18, 7:12 PM
    • 1,818 Posts
    • 1,167 Thanks
    bostonerimus
    • #6
    • 10th May 18, 7:12 PM
    • #6
    • 10th May 18, 7:12 PM
    What exactly do you get for your review? IMHO such "services" are pretty useless. In the accumulation phase an annual (maybe 6 months if you are a worrier) review is probably as much as most people need if they have their asset allocation set up correctly. If you are retired and spending money more frequent reviews might be useful to monitor performance, spending and withdrawal rates. If you can do this yourself you will save a lot on fees.
    Misanthrope in search of similar for mutual loathing
    • nrsql
    • By nrsql 10th May 18, 10:35 PM
    • 1,734 Posts
    • 594 Thanks
    nrsql
    • #7
    • 10th May 18, 10:35 PM
    • #7
    • 10th May 18, 10:35 PM
    What has happened previously with these reviews?
    Have they ended up with minor tinkering and hence fees or have they just said "we've looked at it and advise no change" - plus pages of analyses.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,210Posts Today

7,164Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin