Thousands of people ‘sacked’ by their financial adviser


Thousands of people ‘sacked’ by their financial adviserNew research has shown that thousands of savers and investors have been ‘sacked’ by their financial adviser over the past year.

The figures, by the fund manager Schroders, confirm that some financial advisers are becoming more choosy about who they take on as a client.

The research reveals:

  • Around 20% of advisers have “formally” asked a client to leave over the past 12 months
  • 69% of ‘sacked’ clients had investments of less than £50,000

Why are advisers ‘sacking’ clients?

There are a number of reasons why some advisers, although far from all, have ‘sacked’ clients.

Firstly, the Retail Distribution Review (RDR) which took effect in April 2013 meant that advisers had to move from receiving commissions to charging fees. Some clients may well have refused to move on to the new basis, meaning the adviser had to ‘sack’ them.

Secondly, if fees are set lower than the commission the adviser was previously receiving he or she may have had to reappraise whether they could viably provide an ongoing service to certain clients.

Finally, as the compliance requirements of advising clients become wider and in some cases more onerous, investors with small amounts are often thought to be less profitable.

Has Investment Sense ever sacked a client?

No, and we don’t anticipate ever having to do so.

We believe that good quality, independent financial advice, should be available to as many people as possible.

Through excellent use of technology and efficient working practices, we can offer a high quality service to a range of investors.

How do you find a new adviser if you have been ‘sacked’ by your adviser?

With interest rates so low, stock markets volatile and the new Pension Freedoms coming in to effect from April 2015 good quality, independent financial advice, has never been more valuable.

If you have been ‘sacked’ or need advice for the first time there are a number of ways to find a new financial adviser:

  • Recommendation This is probably the best option, talk to your friends or professional advisers to see who they would recommend
  • This is a directory of Independent Financial Advisers (IFAs). You can search based on your postcode and look up further details such as specialist areas and information on fees
  • Vouchedfor Another directory of advisers, but this time including testimonials from clients

Alternatively you could just call 0115 933 8433 and ask to speak with one of our Independent Financial Advisers!