Invest New Money and Money MOT Service

Video explains the liability and fees when investing new money for pensions and investments under our Money MOT service.

Transcript:

“Hello there. This video is to explore our ongoing money MOT services and what happens if you wish to invest ‘new’ money. 

So ‘new money’:  you wish to make a new pension contribution, you wish to start a new ISA, to use your ISA allowance this year or you wish to make a brand-new investment into investment bond, unit trust, investment trust whatever it might be.

Our money MOT service is designed to give an ongoing advisory service to take into account new tax laws, to take into account investment opportunities for your existing pensions and investments. For example: we may have done in initial review on your pensions and investments, we may have set up new pension and investments and then you signed up to our money MOT service, be it Gold service or Platinum service whatever it might be.

Now that money MOT service covers your existing investments at the time so whatever we recommended on, whatever we’ve advise on, the new money MOT service will cover that.

What we do get from time to time, quite regularly, is clients approach us because they wish to start a new pension or they wish to make a new ISA or make new investments new investment bonds whatever. Now, a lot of people can be surprised that we suggest that: ‘that is not covered by our money MOT service’. 

The reason for that is when you come to us for advice for a new pension or topping up an existing pension or a new ISA or topping up your existing ISA account, that advice is a new liability for us. 

We have to research, as independent advisers, we are required to revisit your circumstances again, to understand you as a client, to then do whole of market research, as an independent adviser, to then make a recommendation to you.  So contacting us and say: ‘can I have your advice within the MOT service to invest another £50,000?’  That is not covered within the money MOT service for the simple reason that it is a brand-new investment or a brand-new pension top-up or a brand-new ISA and we are required by the regulator to carry out full research to take on the liability for the advice for that new investment and then to issue a full written suitability report to you.

That is why we charge within our MOT service for new investments so they are not included within the MOT service.  The MOT service covers all of your existing investments and pensions but any new money, because we have to carry out new advice, new research, new recommendations, we take on liability for it.  So we charge for that advice.

Now what that doesn't stop you doing, if you don't want to pay a fee for our services, for that new advice, well you can top up your existing pension, you can top up your existing ISA portfolio, you may be able to top up your existing bond portfolio but you can do it yourself.  What we always do as part of our advisory services is we give you that opportunity for you to be to top up your existing investments but you don't have to pay us for advice. You can make that decision yourself to go: “Well I quite like my ISA, I’m go to top it up with this year's ISA allowance”. 

But for us to advise on it, we have to go through all of that research, boards etc. We charge but you can top it up yourself.  You may choose to top it up based upon what our previous recommendations were for the funds or the provider etc. but that's your choice.

So the difference here:

The money NOT services cover all of your existing pensions and investments depending upon what you wanted us to cover within your MOT service.

If you wish to put in new money you have two choices:

1. We will do it for you on an advised basis: research, report, recommendation, arrangement and we will charge a fee or
2. You can do it yourself.  You can top up if you so wish: your existing pensions portfolio, ISA portfolio etc.

If you have any questions on new investment monies within the money MOT service please do contact us.  Once your money is inside the pension, once your money is inside your ISA portfolio then ‘yes’ we will include that as part of the ongoing MOT service. 

But I just want to be very specific here:  if you ask us for advice where we take on a liability for that new pension top-up or that new pension or that new ISA top up etc. because we become liable for a new policy that we have to report within our figures to our professional indemnity insurers, to the regulator etc. then we charge a fee for it.

I hope that explains new investment monies for a client who is already part of our ongoing money MOT service.  Thanks very much for watching.”