You are irritated by the slow service and high fees. The implication is that you are not significantly fussed about anything else, say, performance.
Dealing with slow service:
(i) The CFA Institute says you should have an investment policy statement: in it you would define the benchmarks you demand for account delivery, service response time, performance and risk. Your trustee is the one who writes the IPS but all the beneficiaries can push his or her hand and force it. The important point is to document what is acceptable and make sure that independent professionals agree it is reasonable.
(ii) Check the pension deed or bypass trust to see if you have the power to replace trustees. If you do, give your trustee 12 months to make the benchmarks. If you don't tell the trustee (after making the IPS) that you want his retirement and support to appoint a new trustee. He or she will by then understand that if it can be shown that he did not act with care and diligence (as defined by the IPS), you can apply to have him reimburse the fees he has charged.
(iii) Set up a beauty parade of the three best other trustees, give them the IPS, tell them to work to that, pick one you like.
Dealing with high fees
(i) External asset managers are firms that manage money but work through whichever private bank or stockbroker their clients want to use. They should have picked up enough expertise to match a client's feature preference list to the market and arrange a beauty parade. Find one of these and ask for this service.
(ii) Some of the external asset managers negotiate discounted fees for their clients with brokers like Charles Stanley. After checking, I can say that CS actually can do a 100k deal for 345 plus stamp duty, with a human broker, and execute a limit order within this fee. What matters is the broker you work with. The relevant point is maybe you don't have to move, and second, you can negotiate.
(iii) Do not permit any entry fees if you do choose another broker. I mean, 500 is fair enough to move the portfolio but not 3% like IFAs charge. The IPS will be enough to get straight in, no portfolio design advice required.
Is it worth getting advice:
Search: "wikipedia 'external asset manager'" One of these should be able to figure out what you want and set up a beauty parade.
Individual courses are available to help trustees decide between the alternatives.
- look for us on Google "iWMTaxAdvisor"