I’m looking for the cheapest administrator for my ARF, a firm that will do the basics like buy and sell shares on my instructions, collect dividends and administer withdrawals (including PAYE tax deductions) efficiently. I am NOT looking for advice. Which firms should I approach? I would prefer a fixed charge to a percentage of fund.
Cheap no frills ARF administrator
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LDFerguson
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There's two jobs in your query, although you may be able to get both done for a bundled price - ARF administrator and stockbroker. Personally I don't know any ARF administrators who operate on a fixed fee basis, although maybe some of the smaller self-administered ARF firms do.
Fair point. I should have made it clear that I'm happy to pay 'normal' commission rates for buy and sell transactions, which I think are always a percentage. What bugs me is having to pay an arm and a leg for basic bookkeeping: accounting for transactions, transferring a regular 'pension' to my personal bank account and remitting the PAYE deductions (as my 'employer') to the Revenue Commissioners. Have you any names for
Gordon Gekko
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I’d be wary of giving my life saving to the cheapest provider.
The query could be put another way:
“I want to squat on someone’s regulated platform but I don’t want to pay for the privilege”
The query could be put another way:
“I want to squat on someone’s regulated platform but I don’t want to pay for the privilege”
LDFerguson
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Brendan Burgess
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What?
It seems more like
"I don't want a chauffeur driven Rolls Royce. I want to drive myself around in an Opel Corsa."
Brendan
Gordon Gekko
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I don’t think that the regulatory bucket which holds my life savings and through which I buy and sell securities should be a race to the bottom.
And to butcher your analogy, the Opel Corsa still needs an NCT, insurance, and motor tax.
Personally, I’d be happy enough to pay up to 0.5% per annum for QFM plus investment services.
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Suppose I have a €2 million ARF, do you think it's worth €10,000 a year (actually €12,300 including VAT) for a payroll service (probably outsourced) and a bit of straightforward bookkeeping? I don't understand what you mean by "squatting on a regulated platform".
Gordon Gekko
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Yes, I do actually.
What do I mean? Being a Qualifying Fund Manager (QFM) for ARFs and being an investment manager/stockbroker are heavily regulated activities. And heavy regulation means heavy costs. Your “a bit of outsourced payroll” and “some straightforward bookkeeping” comments are a little naive.
So it is very much a case of “Do you see that really expensive really regulated piece of infrastructure you have there? Can I just squat on that without paying you appropriately for the privilege?”
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My bank is far more heavily regulated than either of those and far more transactions go through my bank account each year than would ever to through my ARF. If banks tried to charge anything close to that for their services, there would be a revolution - quite rightly.
What exactly do they do for people like me anyway? Where do they add value?
I’m in the process of eventually getting around to setting up an ARF. The best I’ve found sofar is 0.35% all in p.a to invest in indexed or passive funds and the same company charges 0.4% to let you do your own trading. I don’t know what the trading fees are but the main thing for me will be access to passive global equity fund so it seems ok with me,
the company is a global company with a very well know brand in ireland.
would be delighted to hear of cheaper options though
ive found a broker who will charge €1500 flat fee(all commission is being reinvested) which I think is a bit high for an execution only transfer but I suppose he is looking for a contribution to his PI insurance. I do wonder is he being guided by the fund size rather than the work involved.
the company is a global company with a very well know brand in ireland.
would be delighted to hear of cheaper options though
ive found a broker who will charge €1500 flat fee(all commission is being reinvested) which I think is a bit high for an execution only transfer but I suppose he is looking for a contribution to his PI insurance. I do wonder is he being guided by the fund size rather than the work involved.