Accessing ARF execution only deals with insurers

Please this is not an anti-broker thread. It's just sometimes, certain people are happy to go it alone. I've a pal who is looking at setting up an ARF on an execution only basis. Previously, I seen Zurich and Aviva mentioned as insurers who offer competitive pricing options. All I'm looking for is how to contact these insurers - any guidance appreciated.

Isn't this touched on in this thread?

Thanks for taking the time to reply, Clubman but I'm not sure if that thread answers my question! In it, there's talk about Vanguard and Standard Life and contacting brokers.

I'm just wondering how do you contact Zurich and/or Aviva directly to talk execution only - without going round and round - and without some earnest inhouse sales lad giving you loads of luv. Also, my pal doesn't really want to go through an execution only broker who will charge probably 0.25% if he doesn't have to do that!

I remember @Sarenco saying that Aviva do execution only at 40bps plus a reasonable admin fee and I remember @Gordon Gekko saying that Zurich offer 50bps. Either of these are fine - just want to know how to actually access/action. Who does one ring/email/contact?!

jasdpace@gmail. said:

I remember @Sarenco saying that Aviva do execution only at 40bps plus a reasonable admin fee

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Not quite.

Aviva do (or at least did, I’m not familiar with their current pricing) have a contract with an AMC of 40bps (plus a small annual policy fee) but it’s not (to the best of my knowledge) available on an execution-only basis - you have to go through a broker.

However, bear in mind that it may be possible (depending on the size of the fund) to get an allocation rate in excess of 100% and pay the broker’s commission out of that excess.

Insurance providers do not undercut their brokers. They rely on brokers to retail their policies. My past experience of going direct to Zurich was that they put me through an in-house agent and he charged the top rate for a PRSA. After a few years I switched to an execution only broker and got a much better deal.

S class said:

Insurance providers do not undercut their brokers. They rely on brokers to retail their policies. My past experience of going direct to Zurich was that they put me through an in-house agent and he charged the top rate for a PRSA. After a few years I switched to an execution only broker and got a much better deal.

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Anyone care to provide details of which execution only broker they used, what the charges were and what ARF policy they purchased (including policy AMC) ? Assuming the forum rules allow such a posting.

Thanks @Sarenco and @S class

If we take it that Aviva is only accessible through an execution only broker, then clearly the 0.4% plus admin fee is not readily available. The total fee is probably 75bps for small ARFs (say, €100k) and slightly less for medium to large ARFs when the broker fee is included. If I've got this wrong, I'd be interested in hearing about which brokers could offer a better deal!

Time to rephrase my questions - very slight variation on what @Flybytheseat is asking.

What is the cheapest ARF out there that's accessible and implementable??

There's a poster on here who I understand brokers ARFs on an execution only basis where the management charge is 0.75% (and this reduces for amounts in excess of €200K).

Is there a cheaper executable option available anywhere and how is this accessed? [Again, just interested in the charges - don't want, in this thread, to debate the relative merits of execution only!]

jasdpace@gmail. said:

Thanks @Sarenco and @S class

If we take it that Aviva is only accessible through an execution only broker, then clearly the 0.4% plus admin fee is not readily available. The total fee is probably 75bps for small ARFs (say, €100k) and slightly less for medium to large ARFs when the broker fee is included. If I've got this wrong, I'd be interested in hearing about which brokers could offer a better deal!

Time to rephrase my questions - very slight variation on what @Flybytheseat is asking.

What is the cheapest ARF out there that's accessible and implementable??

There's a poster on here who I understand brokers ARFs on an execution only basis where the management charge is 0.75% (and this reduces for amounts in excess of €200K).

Is there a cheaper executable option available anywhere and how is this accessed? [Again, just interested in the charges - don't want, in this thread, to debate the relative merits of execution only!]

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The 0.4% is the cheapest wholesale price. An advisor will add a margin on top of that. Even the online execution only brokers won't offer that as they won't make any money off it. Your best bet would be to pay a broker a fee to set it up for you on an execution only basis.

Steven Barrett said:

The 0.4% is the cheapest wholesale price. An advisor will add a margin on top of that.

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Ah Steven - that's what my latest post effectively said?!

Steven Barrett said:

Your best bet would be to pay a broker a fee to set it up for you on an execution only basis.

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I'm looking for specifics not generics! Your suggestion may be right but it doesn't tell me who to contact!! By implementable, all I'm looking for is:

........."This broker/QFM will accept ARF business based on a management charge of XXbps".

Hi Jas,

I'd say for lowish ARFs - of the order of €100k - you'll not do materially better than what Gerard is offering. This question has been now posed in multiple threads on AAM and the cheaper rates mentioned previously weren't the full story. I wonder what the best deals are for ARFS of €300k, 500K, €1m but I'll not be holding my breath on getting clarity on this!

The way I look at it is:
- what's the minimum cost on a no advice basis?
- what's the cost including advice?
- the difference between the two is the net cost for the advice and people can then decide if it's worth it!