Pensions and IFA charges

Discussion in 'Accounts & Finance' started by Bumbling Amateur, Mar 17, 2009.

  1. Bumbling Amateur

    Bumbling Amateur UKBF Regular Free Member

    Posts: 86 Likes: 0
    I've spoken to several IFAs about starting a pension and they have all suggested the same provider. This particular pension provider will ONLY set up a personal pension through an IFA. All the IFAs want to charge around £2k (2%) to set up the fund which I think is outrageous. Does anyone have any suggestions?
    Last edited: Mar 17, 2009
    Posted: Mar 17, 2009 By: Bumbling Amateur Member since: Mar 2, 2009
    #1
  2. RAL

    RAL UKBF Regular Free Member

    Posts: 723 Likes: 177
    Try

    ww.h-l.co.uk. Before anyone say anything, No, I do not work for them. I invested in unit trust with them. They also provide corporate pension and personal pension.

    PM me if you want my conact's details at H.L.
    Posted: Mar 17, 2009 By: RAL Member since: Aug 31, 2008
    #2
  3. taxattack

    taxattack UKBF Regular Free Member

    Posts: 433 Likes: 96
    It's a strange coincidence, isn't it, all the IFAs suggesting that provider?

    It is possible to set up a pension for nothing. Are you aware of SIPPs? Try a search.

    Chris
    Posted: Mar 17, 2009 By: taxattack Member since: Apr 7, 2008
    #3
  4. Robs

    Robs UKBF Regular Free Member

    Posts: 219 Likes: 52
    Ifa have got to buy fsa guidelines offer you the most suitable product for your needs,wants and aspirations. now if several have said this then that would be the most suitable product for you.

    there are ifa's who do not charge as much or either a flat fee charge or free.

    You could ring them back and offer them a flat fee, you have got the power. its a recession there lacking custom.
    Posted: Mar 17, 2009 By: Robs Member since: Jun 22, 2008
    #4
  5. Robs

    Robs UKBF Regular Free Member

    Posts: 219 Likes: 52
    sorry i meant its been long day double vision looking at the screen

    Ifa's have got to abide by fsa guidelines, when making a recommendation you the most suitable product for your needs,wants and aspirations. now if several have said this then that would be the most suitable product for you. This is under Mifid rules and cod of conduct. This tells me there doing there job

    fees are always negotiable.

    there are ifa's who do not charge as much or either a flat fee charge or free.

    You could ring them back and offer them a flat fee, you have got the power. its a recession there lacking custom.
    Posted: Mar 17, 2009 By: Robs Member since: Jun 22, 2008
    #5
  6. DragonsDen

    DragonsDen UKBF Newcomer Free Member

    Posts: 6 Likes: 1
    I agree with Robs, Bumbling Amateur, if they're all suggesting the same provider, then it might be because it's the best one for you!

    £2k sounds like a lot of money, but 2% doesn't really provided there are no other initial fund charges, typically fund charges can be around 5%-6%, you need to check that. There may be room for negotiation on the fee, but bear in mind it might be reflected in the quality of service they provide. Good luck, and hope it contributes to a wealthy retirement :)
    Posted: Mar 18, 2009 By: DragonsDen Member since: Mar 17, 2009
    #6
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  7. Bumbling Amateur

    Bumbling Amateur UKBF Regular Free Member

    Posts: 86 Likes: 0
    I don't think they do Personal Pensions do they? First glance at their SIPP however and it looks to have a wide range of funds available. Will need to check these against what is available through the recommended PP. The costs on the face of it look good compared with IFA charges. Only trouble is I've been led along the path of a personal pension to the same provider by 3 IFAs and now I'm thinking about SIPPS which is, as of this morning, a large unknown! More research needed...
    Last edited: Mar 19, 2009
    Posted: Mar 19, 2009 By: Bumbling Amateur Member since: Mar 2, 2009
    #7
  8. Bumbling Amateur

    Bumbling Amateur UKBF Regular Free Member

    Posts: 86 Likes: 0
    I'm aware of SIPPS and investigating now. Any tips?!
    Posted: Mar 19, 2009 By: Bumbling Amateur Member since: Mar 2, 2009
    #8
  9. Bumbling Amateur

    Bumbling Amateur UKBF Regular Free Member

    Posts: 86 Likes: 0
    £2000 sounds like a lot to me. Even if my IFA did do a full day's work! [which I very much doubt].
    Posted: Mar 19, 2009 By: Bumbling Amateur Member since: Mar 2, 2009
    #9
  10. Bumbling Amateur

    Bumbling Amateur UKBF Regular Free Member

    Posts: 86 Likes: 0
    I've found a 'fee based discount broker of financial services products' in the form of Cavendish Online. These people will allow me to apply for the Skandia pension that three IFAs have recommended. Whereas the IFAs want to cahrge me in the region of several thousand pounds Cavendish will charge me a flat fee of only £35 simply to rubber stamp my application form.

    Does anyone have any experience with this or any similar company? It sounds too good to be true!
    Last edited: Mar 21, 2009
    Posted: Mar 21, 2009 By: Bumbling Amateur Member since: Mar 2, 2009
    #10
  11. Robs

    Robs UKBF Regular Free Member

    Posts: 219 Likes: 52
    ouuch! Its Execution only this means that no advice is given and you have chosen, this also means if anything goes wrong, you have no comeback on Cavendish, therefore reducing any chances of compensation if the fund turns out it was not a suitable product.

    this a non regulated sales in terms of being advised, i dont think you wont be able to make a compliant about the other ifa's who recommended this product to you. The reason is because you did not take up their recommendation. You need to look into this a lot further to understand any implications.

    Cavendish actually receive a fee from the provider.

    Execution only should be done by those whom fully understand the implications and have good knowledge of financial products.

    Try negotiating with your ifa's on the fee.
    Posted: Mar 21, 2009 By: Robs Member since: Jun 22, 2008
    #11
  12. euphoman

    euphoman UKBF Regular Free Member

    Posts: 46 Likes: 3
    There are no so many 'true' IFAs out there now-many are tied to larger networks. A couple of things

    1. Do you have any old pension pots from old employers ?
    2.While SIPPS are an option you need to know what you are doing

    I have a contact who knows her way around Pensions. If you visit me website and look under links you'll find them-suggest you ask for Angela and quote my name

    www.wadhambusinessconsultancy.co.uk

    saving you time and money................
    Posted: Mar 23, 2009 By: euphoman Member since: Oct 9, 2008
    #12