IFA Pension Fund set up charges

[Fred Bloggs]

HL do send too much stuff. We have 4x persons accounts in our house so we get 4x everything which is a bind, but generally, HL's customer service is excellent.

[GreenerGrass]

Or have a look at http://www.iii.co.uk/. My Sipp is with Sippdeal, my ISAs with H-L but I'm switching out of H-L into iii as it's a lot better deal on management and dealing charges. The Sipp looks good also.

Be warned iii is crap compared to H-L. They never send you anything at all, not even once a year. In fact I am thinking about moving my ISAs from iii to H-L unless they get their act together soon.
I sometimes think H-L send you too much stuff in the post, but it's the opposite with iii.

[Fred Bloggs]

Given that Alliance Trust already offer ISAs and SIPPs with no commision, why do you think this change will put HL out of business, and even if it does, why would you care?

HL already charges 0.5% (capped at £235 I think) to people who choose investments that don't pay commission, presumably the change means that everyone will now fall into that category, and I guess their business would be sustainable on that basis. There might still be a massive income cut to their income, but they would still be charging more than Alliance Trust, who charge £75 plus VAT.

I'm with Sippdeal, who charge nothing, but I don't use commission-paying funds, so it's possible I'm getting a free ride at the expense of the customers who do earn them trail commission. I wouldn't be surprised if they introduce a small charge when they lose their commission earnings, but if it they charged more than any of the competition I'd be off.

Hmmm, I will have to watch this carefully. I invest in unit trusts via HL. I can't imagine HL will let this threaten their business, but none the less, I will move my SIPP/ISA's elsewhere if required.

[kknandoo]

Hi guys,

Thanks for all the suggestions. I am basically looking to set up Personal pension with funds from Ltd company. The charge I was quoted is for the advise for investments.

I will look into HL & others before going with the IFA.


Thanks again
Nandoo

Question 1 - what sort of pension fund set up is this? Is it a personal pension or a company scheme?

Question 2 - What is the £750 charge for? Is this the charge for them to advise you of where to put your money and how much to contribute? If it is you can save yourself some dosh by using someone like Hargreaves Lansdown but you need to know how much and where you want to invest your money before you go in. HL won't (can't) give you advice.

At the moment you have the option of either paying your IFA nothing and them getting paid commission from the product provider they recommend, or you paying the IFA for their time and getting them to rebate their commission to you or into your pension.

The FSA announced last week that from 2012 commission will be banned and all IFAs will have to charge for their time. On the face of it this will destroy the business models of companies like HL who work on the pile it high sell it cheap approach, offering huge discounts by giving up their commission on the sales of new products and living on the smaller trail commission generated every year.

There must be a way around this, there has to be, it would be madness to put the likes of HL out of business, but I am still investigating.

[IR35 Avoider]

There must be a way around this, there has to be, it would be madness to put the likes of HL out of business, but I am still investigating.

Given that Alliance Trust already offer ISAs and SIPPs with no commision, why do you think this change will put HL out of business, and even if it does, why would you care?

HL already charges 0.5% (capped at £235 I think) to people who choose investments that don't pay commission, presumably the change means that everyone will now fall into that category, and I guess their business would be sustainable on that basis. There might still be a massive income cut to their income, but they would still be charging more than Alliance Trust, who charge £75 plus VAT.

I'm with Sippdeal, who charge nothing, but I don't use commission-paying funds, so it's possible I'm getting a free ride at the expense of the customers who do earn them trail commission. I wouldn't be surprised if they introduce a small charge when they lose their commission earnings, but if it they charged more than any of the competition I'd be off.

[Gonzo]

Hello all,

I have been talking to one of the IFA regarding my Pension fund set up. I have been quoted £750 for this. I think it is quite high. Is this the usual rate that you have paid to set things up. Please advise.

Regards
Nandoo

Question 1 - what sort of pension fund set up is this? Is it a personal pension or a company scheme?

Question 2 - What is the £750 charge for? Is this the charge for them to advise you of where to put your money and how much to contribute? If it is you can save yourself some dosh by using someone like Hargreaves Lansdown but you need to know how much and where you want to invest your money before you go in. HL won't (can't) give you advice.

At the moment you have the option of either paying your IFA nothing and them getting paid commission from the product provider they recommend, or you paying the IFA for their time and getting them to rebate their commission to you or into your pension.

The FSA announced last week that from 2012 commission will be banned and all IFAs will have to charge for their time. On the face of it this will destroy the business models of companies like HL who work on the pile it high sell it cheap approach, offering huge discounts by giving up their commission on the sales of new products and living on the smaller trail commission generated every year.

There must be a way around this, there has to be, it would be madness to put the likes of HL out of business, but I am still investigating.

[rootsnall]

No.



WHS. H-L and Sippdeal are your friends.

Or have a look at http://www.iii.co.uk/. My Sipp is with Sippdeal, my ISAs with H-L but I'm switching out of H-L into iii as it's a lot better deal on management and dealing charges. The Sipp looks good also.

[pmeswani]

H-L and Sippdeal are your friends.

Agreed. Take charge of your own pension plan.

[moorfield]

£750

No.

Do it yourself for £0. It's easy enough.

WHS. H-L and Sippdeal are your friends.

[Fred Bloggs]

Do it yourself for £0. It's easy enough.

[malvolio]

He can charge you or he can get a commission from the pension company. Either way he will get around the same amount (the policy proposal will include a scale of fees payable to agents, so you can work it out).

The question is, does who pays him make a difference to the advice he gives? At least if it's you , you have a better chance of getting an honest answer.

[pmeswani]

Hello all,

I have been talking to one of the IFA regarding my Pension fund set up. I have been quoted £750 for this. I think it is quite high. Is this the usual rate that you have paid to set things up. Please advise.

Regards
Nandoo

Personally, I haven't spoken to an IFA before, so don't know if this is usual practice or not. But I would ask the question, did you discuss the charges before you spoke to them about your pension?

[kknandoo]

Hello all,

I have been talking to one of the IFA regarding my Pension fund set up. I have been quoted £750 for this. I think it is quite high. Is this the usual rate that you have paid to set things up. Please advise.

Regards
Nandoo