DFM / Maximum Ongoing Charges
ParaplannerFP
Member
Good evening,
I'm hoping for your help.
When it comes to recommending a DFM does anyone have a best practice guide on how to layout the charges for the advice?
E.g.
Initial advice charges
Ongoing advice charges
DFM charge
Vat on DFM
Expected/estimated DFM underlying portfolio costs.
I've heard of some advice firms not quoting the expected/estimated cost of the underlying portfolio managed by the DFM but unsure if that is actually compliant or not.
Also, is there a maximum ongoing charge you tend to stay clear off?
I'm off the opinion the lesser the costs to the client the better however don't normally mind mixing a passive and active fund or having a low cost active fund for the client.
With DFM the costs increase by a fair amount and was trying to find out what maximum cost advisers/Paraplanners tend to avoid e.g. 2% total ongoing costs for the client (inclusive of all ongoing advice costs, DFM costs and vat, and underlying portfolio costs for example).
Any help would be appreciated.
Thanks
I'm hoping for your help.
When it comes to recommending a DFM does anyone have a best practice guide on how to layout the charges for the advice?
E.g.
Initial advice charges
Ongoing advice charges
DFM charge
Vat on DFM
Expected/estimated DFM underlying portfolio costs.
I've heard of some advice firms not quoting the expected/estimated cost of the underlying portfolio managed by the DFM but unsure if that is actually compliant or not.
Also, is there a maximum ongoing charge you tend to stay clear off?
I'm off the opinion the lesser the costs to the client the better however don't normally mind mixing a passive and active fund or having a low cost active fund for the client.
With DFM the costs increase by a fair amount and was trying to find out what maximum cost advisers/Paraplanners tend to avoid e.g. 2% total ongoing costs for the client (inclusive of all ongoing advice costs, DFM costs and vat, and underlying portfolio costs for example).
Any help would be appreciated.
Thanks