Over the years, I have read a number of articles by Peter Hargreaves, some of which have been quite interesting, with the majority being dull, repetitive and laughable. In particular, I have treated the repeated bleating about fees (good) as opposed to commission (bad) over recent months with the disdain they deserve. However, his latest piece of fiction cannot be allowed to pass without comment.
The supposition that an IFA can earn 10,000 for two hours’ work is simply preposterous and perhaps highlights how woefully out of touch he is with the real world that we workers have to deal with.
Given that he is talking about investments, the sum involved would need to be between 140,000 and 300,000 depending upon how the commission is taken.
What part of the entire sales process is he suggesting that IFAs ignore? Or is he suggesting that a reasonable IFA can complete a fact-find, undertake adequate research, present a suitable recommendation, complete all paperwork and ensure that all notes and copies are correctly filed in two hours?
My main concern, however, is that Mr Hargreaves is deemed by many outsiders as an “expert” on financial services and I would question how many of them would have the sense to query the sheer stupidity of his supposition.
Finally, as regards the issue of trail commission, or “built-in service charge” payable to “the person who looks after the client, surely that should only be payable to whoever gives the client actual advice on an ongoing basis and not to a company that simply sends out repeated junk mail after the initial sale has been made.
Aveton Gifford Associates