Inedepant Financial Advisors misleading?

Hi,

I have just visited an UK Independent Financial Advisor (one who was a member of the IFA) We were looking through fixed rates for a while until I spotted one which was a much lower rate that the ones we were looking at, with relatively low fees. I asked about it, but he said that they don't 'deal' with them (It was a pretty big Building Society) However I noticed that he wasn't showing me any of the rates that didn't include a "commission" fee, including the one mentioned above.

Therefore I am thinking that visiting an IFA, you are still not guaranteed the best rate. And surely you are lucky to avoid unscrupulous advisors who recommend the deals they know have the highest commission fees?

Visiting an IFA, I was pretty confident I could get the best mortgage available for me at that time, but the above example shows otherwise. On returning home I found a couple of better deals than I was shown, through internet sites such as

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What does everything else think... if you know what you are doing, is it better to look for the best deal yourself?

Neil

Reply to
googlesher
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In message , snipped-for-privacy@yahoo.co.uk writes

If he didnt offer you the ability to pay for service purely by fee and/or did not declare at the outset that he was offering you mortgages from the whole market then he cant describe himself as being 'Independent'.

If he proceeded without advising you that he was receiving a commission form the lender then he is not compliant with the requirements of the FSA.

What do you mean by 'member of the IFA'?

Reply to
john boyle

I don't think this is true of soley mortgage/protection advice

I suspect an employee of an IFA firm, someone advising for an IFA firm isn't an IFA.

Reply to
Matt Robertson

In message , Matt Robertson writes

It is. Mortgages & GI (General Insurance, which is what 'protection' is) are now regulated in the same way as investment advice.

That doesnt make sense. Only an 'adviser' can give 'advice'.

Reply to
john boyle

I don't belive this to be the case when it comes to 'must offer fees'.

Depending on permissions, an adviser working for an IFA firm can give the IFA's (the firm) advice, not the advisers (the individual).

Reply to
Matt Robertson

In message , Matt Robertson writes

No, to be called 'independent' they MUST offer a 'fee only' option.

No, I dont know where you get this from. How could the advice differ?

Reply to
john boyle

Hi John,

I work as an adviser (CAS status) for a firm of IFA's, this does not mean that I am personally an IFA, I am simply a FA, although I can (and do) give advice from the whole of the market.

The advice does not differ, just my status, I work under the IFA's FSA permissions, not my own - I appreciate it's clear as mud!

As far as any product that contains an element of investment, I must offer a fee based option. If I am giving solely advice on mortgage and (non investment based) protection, there is no requirement to offer fee based advice.

Regards,

Matt.

Reply to
Matt Robertson

In message , Matt Robertson writes

Good!

No that makes sense, see below

That makes you independent for Investment Advice.

There is if you are to be described as an *Independent* Mortgage Broker and it would seem that are not.

But it is quite OK for an IFA firm to be independent for its investment business and not independent for its Mortgage and GI business, and this would seem to be the case for you.

Here is the bit from the FSA manual that you need to read :

"Mortgage & General Insurance

MOGI 2.2.4

What must I do if I want to describe myself as 'independent'? If you wish to describe yourself as 'independent' you must intend to: (1) offer a whole of market service; and

(2) give the consumer the option of paying a fee that will be the only remuneration you receive for the service (MCOB 4.3.7 R). If the consumer exercises this option, you will have to pay them any commission you receive on the mortgage sale. "

I hope this link works :

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I now understand what you were trying to say when you said "someone advising for an IFA firm isn't an IFA. " I think what you meant to say was "someone advising for an IFA firm isn't "always* an IFA."

In your case your IFA firm is not independent when it comes to mortgages.

HTH

Reply to
john boyle

Hi John,

What I've been posting is my compliance departments view of the handbook, which after reading it must be debated! I source mortgages from the whole of the market.

Regards,

Matt.

Reply to
Matt Robertson

In message , Matt Robertson writes

Hi Matt,

I hope you get it sorted, I'm 99.999999% certain that you can't be classified as 'independent' for mortgages because of the lack of 'fee only' option.

Does your compliance department classify you as being 'independent'? I notice you dropped the 'I' when you described yourself as an 'FA'?

Reply to
john boyle

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