Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Investments

Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.

Annual percentage charge for “advice” on ISA - is this usual/ reasonable

2 replies

OtterL · 03/09/2022 14:04

Hi Mumsnetters,

was hoping for some insight on whether this sounds reasonable or not. I put some money into a property ISA 3 years ago - through a financial advisor who was a contact of a relative. He recommended putting the funds into a commercial property ISA and I ve not heard from him since, not even when the fund was locked to trading 18 months ago, I had absolutely no notification from him. I realised as I thought I should move my money given the impact on offices during covid and went to look at the fund and realised I couldn’t move anything as it was closed to trading. I ve lost around 5k of value since the money was invested (I do realise investments go down as well as up). Anyway the fund has sent me a statement of annual charges today which amount to £600 which seems a lot. All percentage based and include £200 of advice fees to the IFA whom I ve not heard from in 3 years. These are a 0.54% charge - I don’t remember being advised of this at the time - it was possibly hidden at the time in small print. My question is, is this usual? I ve literally not had any proactive advice from him or even contact in 3 years - I had to mail him to ask if the fund was closed and he apologised for not flagging it at that time. Since then literally nothing so I am aghast at paying him £200 for doing zip. Now that the funds are in the ISA, can I just remove them as IFA to stop them getting the annual fee? If they were being proactive and managing my money, I d be happy to pay the fee - and more - but they are literally doing nothing.

OP posts:
DomingoinLittleOakley · 03/09/2022 17:32

Essentially you are right, but you really need to dig out the original paperwork. If you don't have it, then ask your IFA to provide you with copies, along with the letter that evidences it was sent to you.

You should only be paying an ongoing advice charge for ongoing advice services, and these charges should have been made clear to you at the outset.

Sunseed · 05/09/2022 08:13

Yes, you can instruct the ISA provider to switch off the ongoing advice fee.

New posts on this thread. Refresh page
Swipe left for the next trending thread