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Original poster

£1000 for financial advice - normal?

18 replies

IdaArnold · 20/03/2023 16:04

I met a new financial advisor last week. We’d spoken once previously when he’d taken all my information - savings, pension etc - and we met so he could give me advice on what to do with my money. He presented me with an invoice for £1000 which I was taken aback by.

Ive not used an IFA before - is this normal and should I just pay up? All he said really was to max out my pension for this tax year so seems a bit much.

OP posts:

HermioneWeasley · 20/03/2023 16:05

Did he not set out the fees for his services clearly?

Original poster

IdaArnold · 20/03/2023 16:13

No, he said the first consultation was free. He said he’d charge a fixed fee for specific advice but I thought he’d make it clear when he tipped into chargeable activity.

OP posts:

Toooldtoworry · 20/03/2023 16:26

Bloody hell. I work in financial advice and I'd say I'd be questioning that.

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Bustard · 20/03/2023 16:33

If you didn't sign anything agreeing to these fees then don't pay. He's trying it on.

GlassBunion · 20/03/2023 16:40

My husband and I had IFA recently.

We were charged half price as my husband had recently retired from an affiliated company. We paid £750.

NorthernDrizzle · 20/03/2023 16:59

It is a bit of a con- its a cash cow
You have to get advice before you can draw down a pension at 55

My DH is having to pay despite being a qualified accountant working in financial services and approved in multiple companies worldwide.

My quote was £1000 which it seems is the minimum (mainly public sector final salary)
His was £10k as the pot was so large. The pot is so large because he has been actively managing it for 35 years and knows what he is doing GRRRRR

Original poster

IdaArnold · 20/03/2023 17:15

Hmm mixed responses. What he’s done for me is review my current pension and work out how much I can top up by before the end of the financial year - based on last 3 years contributions - without going over the limit. So I pay as little tax as possible this year.

Is £1000 reasonable for that?

OP posts:

neitherofthem · 20/03/2023 17:36

No, it isn't. That would take an experienced IFA who knew what they were doing maybe a couple of hours at most.

winterbegone · 20/03/2023 17:39

No he should of been clear about payments upfront, although if you attended after the free consultation, you knew there was a payment? does seem alot though

DannyZukosSmile · 20/03/2023 17:41

Bustard · 20/03/2023 16:33

If you didn't sign anything agreeing to these fees then don't pay. He's trying it on.

Yeah, if you didn't sign anything/agree to a specific fee, tell him to jog on @IdaArnold What a LUDICROUS amount. Fucking hell! 😱 Farcical!

Schmutter · 20/03/2023 17:49

There was a complete guide to IFA in the Times on Saturday.

We are needing to appoint someone. Omg the fees quoted in the guide were several times what you were charged. I’m so naive, I assumed about £500.

Original poster

IdaArnold · 20/03/2023 17:53

I assumed about £500 for a full plan. Not sure if I’m naive for thinking that or naive for considering paying £1000!

OP posts:

Vickythevan63 · 20/03/2023 17:58

You have to get advice before you can draw down a pension at 55

No you don’t! I have been drawing down a personal pension via a well known company for 2yrs, no advice taken.

I had duff pension advice from an IFA many years ago, I would never, ever take advice again.

Advice is needed if you wish to transfer pensions with certain guarantees eg defined benefit, guaranteed annuity rates, into a personal pension, but not just to go into drawdown.

Middletoleft · 20/03/2023 18:03

Vickythevan63 · 20/03/2023 17:58

You have to get advice before you can draw down a pension at 55

No you don’t! I have been drawing down a personal pension via a well known company for 2yrs, no advice taken.

I had duff pension advice from an IFA many years ago, I would never, ever take advice again.

Advice is needed if you wish to transfer pensions with certain guarantees eg defined benefit, guaranteed annuity rates, into a personal pension, but not just to go into drawdown.

Likewise. I got taken for a ride when I young and stupid by an IFA who was recommended. Why I didn't have the balls to tell him to get lost I don't know.

It's put me right off the industry as a whole and I'm also at the stage where I need to get some advice after last year's Truss fiasco.

God, it's so depressing 🙄

Skiphopbump · 20/03/2023 18:04

We spoke to an IFA.
He looked at our situation to determine if he could help us.
Then he gave us a quote for work going forward - a set feee of about £2K. We paid the bill and then he gave advice, moved money, bought products etc.

If you had only agreed to a free chat he shouldn’t have then charged you without making it clear he was going to.

Ilovetocrochet · 20/03/2023 18:08

I’ve just had a phone call with my IFA to arrange for a withdrawal from my investment fund. I paid this man a fixed percentage when I invested the money initially and for any subsequent deposits - it can come from the money I am investing or I pay beforehand from other funds. It can work out quite a lot, I think it’s 1% but might be more. I was aware of this fee before I agreed the investment.

Had I not actually made an investment, as in your situation, I would have had to pay him a one off amount to cover his costs - time to talk to you, knowledge of the money markets, writing the report etc.

I now get an annual review visit as I’ve got quite a lot invested through his firm and we go through all sorts of things like any plans I have to spend money, changes to my lifestyle, my attitude to risk etc. Everything he advises has to be run through the due diligence dept to make sure he is giving me the best advice. The investment fund I am in is actively managed and regulated which also costs me, the IFAs company gets an annual amount from my funds to cover all this.

Years ago, the costs of using an advisor were hidden, payments were made but not openly and most advisors were linked to specific funds which they promoted. Then it all changed and any fees have to be transparent and made clear beforehand.

I would have expected the IFA to have discussed his fees with you and asked you to sign that you were in agreement. I would question the firm if that was not the case.

DojaPhat · 20/03/2023 18:11

So he's treated your first conversation when you gave him your info as the 'free' consultation and now subsequently met with you again to advise you (basically max out your pension) and presented you with a £1k fee?

That all sounds rather scrupulous but it's difficult to tell because the people who I know who've consulted an IFA all have different financial interests.

FloydPepper · 20/03/2023 18:14

I think the overall fee feels a bit expensive but not totally unreasonable. What is off though is the lack of clarity on what you were agreeing to. It should have been made absolutely clear up front what the fees were and you should have agreed in writing. The fact you aren’t aware means either you don’t know what you agreed/signed, or he’s trying it on.

only you know which. If it’s the former then it’s on you. If it’s the latter, you need to kick off, not pay, and report him.

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