Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • CSMR
    • By CSMR 18th Oct 16, 6:58 PM
    • 25Posts
    • 3Thanks
    CSMR
    Low cost IFA for DB to SIPP pension transfer?
    • #1
    • 18th Oct 16, 6:58 PM
    Low cost IFA for DB to SIPP pension transfer? 18th Oct 16 at 6:58 PM
    I am transferring a pension from DB to a SIPP because I would like to invest it myself.

    The transfer value is £78,000. Since this is more than £30,000, I need "evidence of advice, signed by an advisor on the FCA register" to proceed.

    I was expecting to pay about £250 for about an hour's work but instead I've been given offers of 2.5-3% of total value or about £2000 which is much more than I was expecting. The IFA I spoke to said the advice would take more than a day's work, which also was much more than expected as the relevant information can be summarized in a few lines and the calculations are very simple.

    Is there anywhere I can find an IFA who can offer the minimum legally required advice at a reasonable cost? Even up to £1000 would look OK to me now.

    (I am not complaining about IFAs because their normal job is to offer advice to people who need to decide what to do and a very personalized service is expensive. I only need the advice for compliance reasons and the quality or effort is not important to me, or even whether the advice is yes or no.)

    Thanks!
Page 3
    • dunstonh
    • By dunstonh 9th Dec 16, 2:52 PM
    • 90,283 Posts
    • 57,061 Thanks
    dunstonh
    I did that and got 1% on a £75k transfer. £750 for probably 1hr work in the end, 2hrs max
    I cant see how it is possible that there is just 1-2 hours work.

    I really fear that these types of companies are just going to end up dumping their liabilities on the FSCS in the end leaving the long term genuine companies with the bill.

    I teach finance, made an unsolicited personal promise not to sue, and did not require positive advice, so the IFA may have felt safer.
    Which has absolutely no meaning and would be totally disregarded in the event you did decide to later take action.

    I am wondering if there is a way to pay the fee out of the pension value rather than out of my own money. (So effectively out of gross income rather than net income.)
    Yes there is if the receiving pension is one that the IFA sets up.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • DavidLaGuardia
    • By DavidLaGuardia 9th Dec 16, 3:26 PM
    • 599 Posts
    • 268 Thanks
    DavidLaGuardia
    Not true. They're gagging for it and keep calling me to be selected and get on with the job. It's a pot of £400k and they are typically asking for 1.5% provided I have an ongoing relationship at 0.5%/year Alternatively, just the transfer for 2%. I mean, whose pension is it? It seems parasitic, and being compelled to go through this process is ridiculous. The pension offer is £17,000/year and I'll pay 40% tax on all of it because I'll still have income.
    So, if anyone knows a low-cost IFA please let me know.
    Originally posted by Erc1046
    Are you saying it isn't worth taking from the scheme because of the tax now and you don't want to spend it right now??? Surely one option to consider is to NOT transfer and then put this annual pension straight into a SIPP, get all the tax back (also creating a new fund a 25% tax free cash) for when you do retire. This may be a better option by the time you get to a certain age than transferring it now. Do you not get the option to defer it, what is the reason for doing anything with it?. If it is still better to transfer then you could get someone that didn't exceed 1%
    Last edited by DavidLaGuardia; 09-12-2016 at 3:29 PM.
    • Malthusian
    • By Malthusian 12th Dec 16, 10:51 AM
    • 3,555 Posts
    • 5,445 Thanks
    Malthusian
    I cant see how it is possible that there is just 1-2 hours work.
    Originally posted by dunstonh
    Well, it sounds like the punter did the work of getting the CETV and accompanying information. And as I understand it they have chosen the receiving SIPP and investments, and done the paperwork as well. The adviser is only providing the recommendation to transfer or not.

    So:

    - Initial email/phone correspondence, get client to send pension paperwork, send client a fact find to fill out via email [30 minutes]
    - Plug transfer values and pension figures into a TVAS system [15 minutes]
    - Plug pension figures, client's name and TVAS critical yield into a template letter, full of sentences like "I have not advised you that... you have chosen etc..." "You would require a growth rate of X per cent but you are confident that your chosen investments will etc" [30 minutes]
    - Drink coffee and eat biscuits [15 minutes]
    - Send cut-and-paste job, I mean suitability letter, to client along with invoice and a piece of paper saying "I understand the advice in this letter and agree not to complain" [15 minutes]
    - Cash cheque, wash hands [15 minutes]

    Total time 2 hours.

    Now obviously the bit missing here is the bit where you check that it's actually a good idea for the client to transfer. Which requires a meeting to do a proper fact-find including follow-up questions, as opposed to sending them something to fill in via email. And research of what the DB money is going to be invested into at the other end. However none of this actually has to be done if all you want is to provide squiggles for dosh with a bit of cargo cult compliance thrown in.

    (A cargo cult compliance file is one that has a fact find and a suitability letter and all the things that a compliance file should have, in the same way that primitive Pacific Islanders built airports out of wooden boxes and straw aeroplanes and pretend air traffic controllers wearing headphones made of coconuts, in the belief that these rituals would cause planes to land with food and bounty, just as they did when the Americans performed them. They'd done everything right and their airport had all the things it needed to be an airport, the only problem is that those things didn't function.)
    • allan7272
    • By allan7272 31st Aug 17, 9:16 PM
    • 3 Posts
    • 1 Thanks
    allan7272
    All I can say is try fixmypension dot com
    I had skipped over them as the name looked a little whimsical but they were the only one whe met where I was, i.e. looking for a no BS IFA who could do the transfer and not try and con me in the process.

    As it turned out, my transfer quote only hade 10days left on it and we managed to get it done in time.
    (yes it was the highest quote I had received)

    Very pleasont people all round. And as far as I can tell, select products that are in the punters interest. They deserve the success they have.

    Hope this does not break any forum rules. It's just I called so many IFA's, and they were the only one who really just wanted to do the transfer. And at the most reasonable cost - yes I know it is still painful. But far below any one else. From what I can tell they are geared up to just get it done.

    If you need any more details just pm me.

    Cheers - Allan
    • soulsaver
    • By soulsaver 1st Sep 17, 12:00 AM
    • 1,520 Posts
    • 558 Thanks
    soulsaver
    See post #36 above..
    and http://forums.moneysavingexpert.com/showthread.php?t=5554142
    • Linic
    • By Linic 1st Sep 17, 7:56 AM
    • 2 Posts
    • 0 Thanks
    Linic
    DB transfer
    I want to accept My old employers offer and transfer pension money to my sipps. Old employer said he will cover costs of IFA if I use his IFA. However after telephone interview with IFA and me giving over my financial details. IFA wants me to invest in his funds only.
    I refused and complained to old company. Now IFA no longer wants to deal with me and old company supports his stance. I think it is blackmail so now I want old company to pay for costs of proper IFA advice for me.
    Where do I stand legally?
    • IanSt
    • By IanSt 1st Sep 17, 8:59 AM
    • 206 Posts
    • 158 Thanks
    IanSt
    I want to accept My old employers offer and transfer pension money to my sipps. Old employer said he will cover costs of IFA if I use his IFA. However after telephone interview with IFA and me giving over my financial details. IFA wants me to invest in his funds only.
    I refused and complained to old company. Now IFA no longer wants to deal with me and old company supports his stance. I think it is blackmail so now I want old company to pay for costs of proper IFA advice for me.
    Where do I stand legally?
    Originally posted by Linic
    I'm not legally trained, but I'm not sure where you think the blackmail in this is. Your old employer has offered to pay the costs if you used his ifa. For valid reasons (to you) you do not wish to use him, but that does not mean that your old employer has to pay for a different ifa to be used.

    The old employer has made you an offer, if you do not wish to take it then you are not forced to take it.
    • Malthusian
    • By Malthusian 1st Sep 17, 10:17 AM
    • 3,555 Posts
    • 5,445 Thanks
    Malthusian
    Where do I stand legally?
    Originally posted by Linic
    *Edit* Duplicate of this thread, replied there.
    • Mark170770
    • By Mark170770 9th Jan 18, 2:56 PM
    • 1 Posts
    • 19 Thanks
    Mark170770
    Hi is there any chance you can give me the Fin Advisor you used for DB to SIPP transfers please.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,650Posts Today

8,257Users online

Martin's Twitter