Is there a strict process for transferring from one adviser to another?

14 July 2021

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Question by Max

Is there a procedure or "rule" about how should one's financial affairs be transferred from 1 IFA to another?

I had an IFA who looked after everything including pensions and insurances. When I moved to another, the new IFA discarded my insurances (I assume because there was no on-going commission) and years later I found out my insurances were invalid (because the way I was paid had changed since inception of the insurances).

I lost around £200,000 in protection income which really hacked me off!

Answered by Boring Money

Hi Max, the short version, there are no specific rules about how a servicing should be transferred from one adviser practice to another.

However, that is not to say you should not anticipate good advice and great service. Financial Services practices are bound by some key principles, not least ‘Treating the Customer Fairly’ and at a more fundamental level making sure you enjoy good client outcomes.

I think you are right to feel ‘hacked off’.’ Fee structures should not influence the advice you are given or the products and services you hold and how you are looked after. The firm in question has let you down and I would write to them to explain you are dissatisfied and give them the chance to explain what has happened and why. Financial Advice practices are generally staffed by highly professional and qualified individuals. Whilst I understand your cynicism for the cause of the issue, I would start by giving the practice the benefit of the doubt and the opportunity to explain their actions. If you are dissatisfied with their reply, you have a right to recourse through the Financial Ombudsman Service.

As a wider point, if you are changing financial advice relationships, it is always good to ensure you and the advice firm have a clear agreement of what each of you are needing and offering as part of the service. I would also start by looking for firms that have Chartered Financial Planners or access to them within their business model. This should be an indication that you are dealing with the brightest and best in the industry.

Good luck and I hope the advice firm help find you a remedy.


Answered by

Boring Money