Slow Boutique Broker dealing advice

[Googie]

Morning All

Been with current broker for several year's following recommendation of colleagues and friends. Have a Pension and ISA via them. Pension on a 3rd party platform. Generally, satisfied with overall performance of investments but very dissatisfied with Broker delays in processing request to invest monies. This is always on their timescale which in a service offer I consider unacceptable but maybe I am being unreasonable?

As I knew there would be delays, I advised them on 19-03 that I would like to make contributions to Pension and ISA on 6-04. Response along the lines that we are very busy with tax year end and that it will take 2-3 weeks to issue recommendations-nothing yet received.

The fee basis is a per below which excludes 3rd party platform charges so not cheap whilst I get to pay for their delay in more ways than one

Initial charges @ 3%
On going management @ 0.75%

Have raised the delay issues several times but nothing changes...

Views?

Thanks in advance

[darreni]

Maybe don’t leave it until the busiest time of year?

There will be any number of clients in the que before you I suspect.

[anonymous-user]

Move.

[Simpo Two]

Will the platform accept monies direct from you? Might be worth a call - and you'd save 3%.

[Googie]

Thanks for the replies Guys

My dealings relate to the new financial year but moving would be the sensible option but to who?

Will ask the question direct of the platform although don't fancy picking my own trades!

[Simpo Two]

Googie said:

Will ask the question direct of the platform although don't fancy picking my own trades!

If in doubt you could add the new money to the existing funds/stocks - if you're happy with them.

If you do decide to go direct and ditch the broker make sure they stop paying fees to him/her. Obviously inform the broker too.

[DonkeyApple]

If you're happy with the charges and performance then it might be worth talking to them ahead of moving.

It seems logical that as you were looking to do things related to the new tax year that they would revert after completing all the work for those needing to rush stuff through on the old year and it's only just been 3 weeks since you made contact.

I assume you have a direct contact there who manages your account so maybe the first step is to call them directly and ask what they'd like to do for the pending 3%?

[Googie]

Thanks both-yes have direct access to the broker with whom I have raised similar concerns re lack of speed in the past, all rebuffed with the usual platitudes-there is a bit of an arrogance here-I get the impression that they have bigger fish to fry and are happy to exploit a position of superior knowledge in what is a very specialist field-heads they win and tails I lose-ever time!

Will call them tmrw

thanks again

[DonkeyApple]

Googie said:

Thanks both-yes have direct access to the broker with whom I have raised similar concerns re lack of speed in the past, all rebuffed with the usual platitudes-there is a bit of an arrogance here-I get the impression that they have bigger fish to fry and are happy to exploit a position of superior knowledge in what is a very specialist field-heads they win and tails I lose-ever time!

Will call them tmrw

thanks again

I wouldn't get too bogged down in the 'superior knowledge' aspect as that can often be misread. However, it is plausible that in a small firm the broker is going to prioritise larger accounts. They shouldn't do because of TCF but at a certain level it is impossible to stop which is why you tend to want your brokers to handle clients who are all in the same ballpark. As soon a a broker squires a 'whale' it can mess things up.

However, I think it's fair to say that the investment side of the industry does operate on a slower basis than say mine and that brokers simply work at a much slower pace.

I would just bear in mind that even if you are a 50p douche bag and he is an Harrovian with a collection of solid gold Georgian butt plugs, handed down from father to son, if you are genuinely happy with the fees and the performance and you only have to talk to him once or twice a year then moving may be cutting your nose off to spite your face.

Your not hiring an IFA to be your buddy, long term investments aren't as time critical as other business and frankly it's sometimes no bad thing to not actually like your IFA as it helps you to be objective over whether what you're paying is worth the returns they're getting you and the quality of the ongoing tax management etc.

[Googie]

Thanks for the detailed post Donkeyapple- conscious of cutting nose/spite face as sometimes better the devil you know and I should take the long term view which is where overall performance is the key.

Just struggle with the laissez fair approach to investment by IFA especially when concerns have been raised before. Like you I don’t get this luxury in my field which would be very barren indeed if I was leaving clients in the lurch for 2-3 weeks.

Thanks again and good to get another view on the point generally.