Theoretical Question - DB to SIPP

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Fermion
Fermion Posts: 163 Forumite
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in Pensions, annuities & retirement planning
There seems to be a lot of questions on this forum about the mandatory requirement (and cost) of using an IFA when switching from a DB pension into a SIPP. I have a theoretical question:-

If an IFA had their own old DB pension that they decided they would like to switch to a SIPP, would they still have to pay for another independent IFA to conduct a review or would the pension provider accept that as an IFA they had the necessary financial skills to conduct an adequate risk assessment on their own pension funds?

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  • Aegis
    Aegis Posts: 5,688 Forumite
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    An interesting question. As the regulation states that the individual must take advice, my suspicion is that such a person would indeed be required to get advice from another IFA, however I imagine it could be done by a colleague for a reduced rate.

    I've not encountered this exact scenario though, so it is just a guess based on how I recall the regulation being written.
    I am a Chartered Financial Planner
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  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    If an IFA had their own old DB pension that they decided they would like to switch to a SIPP, would they still have to pay for another independent IFA to conduct a review or would the pension provider accept that as an IFA they had the necessary financial skills to conduct an adequate risk assessment on their own pension funds?

    They can do their own. There is no commercial risk. The IFA is not going to put in a complaint against themselves that they would have to pay out on to themselves.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • HappyHarry
    HappyHarry Posts: 1,588 Forumite
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    The IFA can do their own, but they would still need the appropriate qualification and authorisation to do the transfer. This means that a significant number of IFAs would not be able to do so.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    An IFA might also need to advise themselves that it's not a good idea for their circumstances so decline to support the transfer proposal. They can then sleep soundly knowing the matter had been fully considered.
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