IFA fined 1.1m for annuity/drawdown/transfers misselling

dunstonh

The response does state that the person asking the question doesnt state what pension they are in. It also says they should seek advice.

It mentions the generics but doesnt explicitly say anything about the various retirement options. It doesnt say he should do annuity purchase or unsecured pension. There is only so much you can say in a short, edited response and compliance requirements typically mean you end up sticking to generic responses and dont go into any real detail. Especially with high risk options.

Always assuming he was not charged a massive fee by the IFA to arrange the drawdown of course - this is a very simple DIY procedure and can be done for very low cost.

Or a low fee which is cheaper than many DIY options. Of course, its simple to do but its also the wrong thing to do for many people. Its very easy for someone without any knowledge to do the transaction and end up in a more expensive plan with lower benefits than what they already had with no way to reverse that decision. This is one of the main reasons that the FSA class it as a high risk transaction.

whiteflag_3

EdInvestor wrote: »

I don't know.Anyone who thinks you can take decisions about annuities vs income drawdown AFTER taking a lump sum rather than before, doesn't understand how the system works.

Exactly!

So is the "massive" IFA fee for the ADVICE ( as it would appear advice is always required at retirement, as its such a complicated area and possibly a once in lifetime decision) or is it for the IMPLIMENTATION which (as you rightly point out) can be straightforward and cheap once the right decision has been made?

EdInvestor

whiteflag wrote: »

So is the "massive" IFA fee for the ADVICE ( as it would appear advice is always required at retirement, as its such a complicated area and possibly a once in lifetime decision) or is it for the IMPLIMENTATION which (as you rightly point out) can be straightforward and cheap once the right decision has been made?

You would hope it was the former.But here's an IFA writing in the public prints and completely missing a key option.

Doesn't give you much confidence in the quality of the advice, does it?

dunstonh

re's an IFA writing in the public prints and completely missing a key option.

He isnt listing any specific option. Just product generics.

Doesn't give you much confidence in the quality of the advice, does it?

He isnt giving advice. He makes that clear in the article.

Anyone relying on a short media snippet for advice is a fool.

EdInvestor

dunstonh wrote: »

Anyone relying on a short media snippet for advice is a fool.

You're right, as far as outlining options and providing info is concerned, we would do better on this forum.

whiteflag_3

EdInvestor wrote: »

You would hope it was the former.But here's an IFA writing in the public prints and completely missing a key option.

quote]

No he doesnt- your just being pedantic

The only ADVICE he gives is get advice - a point you seem willing to ignore

You're right, as far as outlining options and providing info is concerned, we would do better on this forum

Agreed ! so perhaps better not to post links to such articles.

Lokolo

whiteflag wrote: »

Agreed ! so perhaps better not to post links to such articles.

To be fair I think its only you dunston and ed who are reading this thread

purch

Anyone relying on a short media snippet for advice is a fool

I guess you havn't been on the House Prices forum recently....:eek:

That's all they rely on over there !!!!!! :rotfl:

whiteflag_3

Lokolo wrote: »

To be fair I think its only you dunston and ed who are reading this thread

yep, but it keeps me off the streets.:p