Our new adviser wants to charge us far higher fees. How can we learn if this is wise?

21 November 2022

Question by Nigel

Our financial adviser (handling my wife’s and my pension pots) has retired and passed us into the hands of a new company (Compass Financial Services). He was very easy to get on with and to understand.

The new company wants to charge us far higher fees (he didn’t charge upfront) and consolidate our existing funds to a single company (Quilter). How can we learn if this is wise?

Though not stupid - I hope - neither of us are great with figures and are currently swamped by literally months of their conference calls and mountain of paperwork.

Answered by Boring Money

Hi Nigel,

When you have worked with someone for many years, you have built up trust with that person and potentially even see them as a friend.

When you are passed onto someone knew, it is natural to be skeptical.

The first thing I would say is that you should not be having to pay initial fees. You have worked with your adviser over the years and he has chosen to pass you onto this new firm. You are not a new client and therefore you should not be paying new fees. If you had chosen to approach them yourself then this would be different.

The second thing is to ask yourself if you felt that the funds that the previous adviser had arranged was correct. If it was, then why would you need to change them?

Is the new firm part of Quilter and therefore they have no choice but to recommend their funds? Or are they independent, and just feel that Quilter is the best place for you?

Take your time to make the decision that is right for you. Do not feel pressurised and if in doubt, take a step back and wait until you are ready.

I hope it helps!

Joshua Gerstler
Chartered Financial Planner

Answered by

Boring Money