Do You Really Need 50000 To Get Advice

Do You Really Need 50000 To Get Advice.

Research released by Yorkshire Building Society has suggested that the minimum that most financial advisers will consider when taking on new investment clients is £48,500.

Yorkshires research was based upon a sample of 211 financial advisers and over 2000 investing adults in September 2013.  The research follows hot on the heels of Defaqto research which suggested that bankers and advisers were looking at between £100,000 and £50,000 as a minimum.

You will be delighted to know that we do not have a minimum but there is a point when the amount to be invested versus the charges levied will become uneconomical for us all.

RDR Changes and Fees
The Retail Distribution Review started in January 2013, meaning that for financial advice a fee must be agreed with you for financial advice.  This
can be agreed with you and paid directly or paid from the investment or pension fund, but it must be agreed in writing.  For no-advice selling,
financial companies can still take full commission without the need to agree it.

In addition, RDR means that to give financial advice, advisers must be level 4 ('A' levels/degree level) qualified.

You can now guess why many banks and insurers have closed their financial advisory arms.

Comment

The business of financial advice is a high risk business to the adviser as we are liable.  Fees must be quoted and there will always be a minimum that an adviser will charge or that an investor is prepared to pay.  Our minimum
fee for advice starts at £120, but we suggest for let's say an £11,000 stock ISA, we would charge £330.  But in the long term, there are no hidden fees
or commissions and many investors will make that back or save it over just a few years.