Advisers hit out at Which? fee probe
Advisers have questioned research conducted by Which? following a survey which found a wide disparity between fees quoted for simple transactions.
The Which? survey of 200 advisers asked for quotes to transfer a £10,680 investment into a stocks and shares Isa. The average fee was £356 but one adviser quoted £2,500 while two others quoted just £106.
It also asked about a £5,000 transfer into a stakeholder pension. The cheapest fee quoted was £50 while the most expensive was £2,500.
Yellowtail Financial Planning managing director Dennis Hall says: “The kind of things Which? is asking for quotes for are in isolation and therefore not something that people would get good quotes for. IFAs cannot make money out of single pension transfers or investing in Isas.”
Jacksons Financial Services managing director Pete Matthew says: “If the client obsesses too much about the price, I am likely to politely point them towards another adviser. I do wonder if some of the more expensive quotes are pricing to avoid just such prospects.”