You can switch wealth managers – but be aware of exit fees.
Whether you are trying to save on costs, think that your portfolio is under performing or you have found a better deal, the following tips may help your wealth manager switch run more smoothly.
Read the terms and conditions of your existing agreement
Check to make sure that there aren’t clauses that need to be met before you can part. There will normally be a formal withdrawal process for you to follow if you wish to switch away from your current manager. Officially declaring your intent to withdraw your portfolio from their management service is normally achieved by delivering a signed letter instructing them of your wish to leave to your manager.
Collect investment records and transfer them to your new wealth management provider
Your old wealth manager will be required to give you this information but you should ask for copies of these in your letter to help give you a chance to review them. It should also give you a chance to fully understand the costs and true performance of your portfolio if this has been a concern. Normally, funds can be transferred quickly and simply through automated systems like ACATS (automated customer account transfer service). In some cases, these automated transfer services may mean you do not have to let your existing provider know that you are leaving.
Find out about, exit sales or transfer charges
check with both your old and new provider, before you switch, whether or not you will face any transfer fees or charges in addition to the management fees. Some investments require fees to be paid for exiting early or new investments may need to be made if they’re unavailable with your new firm. These extra costs and charges are best to consider before you finalise your switch so that you can account for them upfront.
Take your time when you switch from one provider to another and ensure that you read contracts and terms and conditions carefully. Do not allow yourself to be rushed into deciding before you fully understand the implications, costs and terms and conditions of doing so.
- Need a new wealth manager? Compare the best wealth managers here.