Investments taken out by an IFA for a client

[bitchstewie]

If investments have been setup for someone by an IFA but all correspondence is in the name of the client and all correspondence goes directly to the client, would you expect that if the client contacted the platform(s) directly they would be able to take instructions from them, or would you expect they would need the IFA to make the request?

[JulianPH]

bhstewie said:

If investments have been setup for someone by an IFA but all correspondence is in the name of the client and all correspondence goes directly to the client, would you expect that if the client contacted the platform(s) directly they would be able to take instructions from them, or would you expect they would need the IFA to make the request?

It depends on the platform. Many IFAs deliberately use platforms that won't deal with then end client, whilst other are more open in their platform selection.

If you are doing this you also need to ensure the platform cancels any ongoing advice fees.

[bitchstewie]

Thanks

I'm just trying to understand the usual process when an IFA's services are no longer needed but the platforms they're using do deal directly with the public too and all the correspondence goes directly to the client from the platform and is in the clients name but does mention the IFA as first "point of contact" if the client has any queries.

[JulianPH]

bhstewie said:

Thanks

I'm just trying to understand the usual process when an IFA's services are no longer needed but the platforms they're using do deal directly with the public too and all the correspondence goes directly to the client from the platform and is in the clients name but does mention the IFA as first "point of contact" if the client has any queries.

If the IFA is being mentioned (by name) as the first point of contact then this is a strong sign that they are still being paid their annual fees by the platform.

You will need to inform the platform you are no longer using the IFA and they should stop all fees being paid to them with immediate effect, remove them completely from your account(s) and only accept instructions from you.

[bitchstewie]

Thank you

All that's needed is to be in a situation where the platform will take instructions directly from the client.

If you part ways with an IFA is that usually where you end up?

[JulianPH]

bhstewie said:

Thank you

All that's needed is to be in a situation where the platform will take instructions directly from the client.

If you part ways with an IFA is that usually where you end up?

Let me know which platform it is and I can be more helpful!

PM me if you prefer. They all work differently (some accept direct clients, some don't and some charge extra for this - I am not trying to evade the question!).

Cheers

[dxg]

JulianPH said:

bhstewie said:

Thank you

All that's needed is to be in a situation where the platform will take instructions directly from the client.

If you part ways with an IFA is that usually where you end up?

Let me know which platform it is and I can be more helpful!

PM me if you prefer. They all work differently (some accept direct clients, some don't and some charge extra for this - I am not trying to evade the question!).

Cheers

What about if your IFA is no longer answering your emails?

[bitchstewie]

Fidelity/Funds Network.

I've used them myself in the past but that was direct so I'm not sure what the difference is when things have been done through an IFA.

They send statements directly but historically any money going in or out has been via the IFA.

[JulianPH]

dxg said:

JulianPH said:

bhstewie said:

Thank you

All that's needed is to be in a situation where the platform will take instructions directly from the client.

If you part ways with an IFA is that usually where you end up?

Let me know which platform it is and I can be more helpful!

PM me if you prefer. They all work differently (some accept direct clients, some don't and some charge extra for this - I am not trying to evade the question!).

Cheers

What about if your IFA is no longer answering your emails?

1) That would not be a surprise in the slightest

2) It is the platform/provider you need to communicate with, not the redundant IFA

I understand many people are hoodwinked into the IFA's line that they are managing your money, but they are not. As you know (but others don't) they put your money onto a platform (which you pay for) and then select some funds for you (which you also pay for) whilst charging you (which you obviously pay for) for the privilege of them doing so.

If they just stuck to charging a fee for providing their knowledge and experience as and when you required this (perhaps with a small retainer to check with you on this) then maybe more people would trust and use them.

I digress!

[JulianPH]

bhstewie said:

Fidelity/Funds Network.

I've used them myself in the past but that was direct so I'm not sure what the difference is when things have been done through an IFA.

They send statements directly but historically any money going in or out has been via the IFA.

You are 100% fine with them!

[bitchstewie]

JulianPH said:

You are 100% fine with them!

Yes it was more how the process usually works.

My assumption and hope was that after the "bye IFA" email/letter we can just deal with Fidelity directly and do whatever a direct client can do which I'm fine with.

@dxg how do you end up paying someone to manage your money who refuses to reply to your emails?

[JulianPH]

bhstewie said:

JulianPH said:

You are 100% fine with them!

Yes it was more how the process usually works.

My assumption and hope was that after the "bye IFA" email/letter we can just deal with Fidelity directly and do whatever a direct client can do which I'm fine with.

@dxg how do you end up paying someone to manage your money who refuses to reply to your emails?

That is exactly what I meant!

The process is that you can work with Fidelity in exactly the same way as is there was never an IFA in place before.

They are one of the providers who are not beholden to IFAs and therefore put you first.

Your assumption is 100% correct, is what I should have said!




As for @dxg - I quite agree. Shameful.

[dxg]

Well, my first hurdle is trying to sort out the fact that he also spelt my name wrong in two different platforms... I didn't notice at he time, 6 or so years ago.

I was promised something that I could log into and check the progress of my funds, and deal with that sort of thing myself. In reality, I have to wait for statements to turn up once a year.

Need to sort it out, really.

All in, it's been a bad experience. I suspect he did well out of it, though as he sold my three different things, one of which I am now convinced I don't need. But can't get rid of due to lack of access and the name problem.

[dxg]

And a related question:

How do you find a decent IFA?

[dxg]

Oh, and just to make this story worse, I'm currently sitting on a stack of cash due to how badly I've been burnt by this experience.

Clearly, that's underperforming... It's liquid, at least.

[bitchstewie]

dxg said:

And a related question:

How do you find a decent IFA?

Devil's advocate and perhaps controversial but why do you believe you need one?

You absolutely may, I don't fall into the "IFA's are bad" camp, but it seems the obvious question

[JulianPH]

bhstewie said:

dxg said:

And a related question:

How do you find a decent IFA?

Devil's advocate and perhaps controversial but why do you believe you need one?

You absolutely may, I don't fall into the "IFA's are bad" camp, but it seems the obvious question

And a very good question indeed.

It all boils down to what people consider to be "financial advice".

If this is information, guidance an planning (obviously from someone qualified and experienced in such matters) then this is not regulated financial advice.

If you require a personal recommendation to sell and buy something (the sale) as part of this then this becomes regulated financial advice.

A poor analogy, you want to buy a new car, but are not sure which one. A qualified and experienced (perhaps a former racing driver) tells you all about the pros and cons of each car and helps you arrive at an informed conclusion as to which one to go for. It is always your choice though.

A used car salesman just wants to sell you something, regardless of whether it is the right thing for you.

As I said, a poor analogy.

[dxg]

Put simply, I want do something that returns above inflation. I have a fair understanding of my own risk appetite, but I could - at best - be described as financially illiterate. Need advice on what the options are... Also have to prepare for my own future.

I would imagine I'm a simple client...

[Simpo Two]

bhstewie said:

All that's needed is to be in a situation where the platform will take instructions directly from the client.

If you part ways with an IFA is that usually where you end up?

That's how it worked for me. Then I moved my funds to a cheaper better platform than the one the IFA put me on, saving even more money

dxg said:

And a related question:

How do you find a decent IFA?

Pass.

dxg said:

Put simply, I want do something that returns above inflation. I have a fair understanding of my own risk appetite, but I could - at best - be described as financially illiterate. Need advice on what the options are... Also have to prepare for my own future.

Preparing for your future could need financial planning which is what IFAs actually mostly do. I never found one that took the slightest interest in my investments once they'd been made, or in rebalancing, or advising me on maximising allowances each FY. They are off chasing new punters whilst living on your savings.

One thing that worked for me, if you don't want to get embroiled in funds, is to consider solid high-dividend shares. Regardless of the share price, the dividends will see you well ahead of inflation.

[bitchstewie]

dxg said:

Put simply, I want do something that returns above inflation. I have a fair understanding of my own risk appetite, but I could - at best - be described as financially illiterate. Need advice on what the options are... Also have to prepare for my own future.

I would imagine I'm a simple client...

I'd try and separate out planning from advice and when speaking to IFAs there are different meanings of the word "advice".

If you have £20K in cash that you don't expect to need and you know your own risk levels it could be as simple as go to somewhere like Vanguard and open an ISA and drop the money in a LifeStrategy fund that's on your level of risk - job done.

So for example as a layman I would see planning as someone explaining how it makes sense to use your ISA allowance before putting money into taxable accounts (usually) whilst "advice" might be a nice man or woman sitting in your house and suggesting you put your money into a particular named fund.

If you have multiple homes and kids and pensions and a general tangle of finances where you don't even know where to start then you might need some help with planning.

I think where it falls apart personally is that if you need some initial help with planning and understanding options the model of many IFAs is that you're expected to hand them 1% of every penny you have invested forever whilst they "manage" it for you.

As I said above I'm not saying they're all bad and I'm not saying nobody needs them.

Simply that it depends on your situation and also how much time you want to put in to understand things as in if you spent a few hours understanding the basics that could save you thousands in fees over the years.