Issue transfering Pension with GMP

dunstonh

I am not sure what providers have stopped taking them. Could you name them ? As far as I am aware most insurance companies still take them.

Wouldnt it be easier for you to list the insurance companies that you believe do business on execution only basis without an IFA being involved? Thats a much shorter list.

Take a read of the FSA warning that was issued for pensions offered on direct offer basis:
http://www.fsa.gov.uk/pubs/newsletters/fa_newsletter11.pdf

We remind firms that the initial presumption with
any pension transfer is that it is not suitable. Any
advice, and therefore any communication, to
members of final salary schemes should take this
presumption into account.

---

It was following that FSA publication that you started seeing firms offering pensions on direct offer basis withdraw from occupational pension transfers and asking for them to see an IFA to sign off on it.

But e/o is still a legitimate way of conductiing business regardless of the ceding scheme type.

EO is but most insurance companies dont offer EO. They are set up on direct offer basis.

vbm

Dunstonh, are you confusing E/O with Direct Offer promotions ? Which the clarification refers to. That warning was pretty much 100% aimed at Alexander Forbes and their Leeds office who were conducting mass direct offer excersises for DB schemes. There were essentailly mailing people with 10 page packs with critical yields and explanations of the risks involved. Then inviting them to transfer off the back of information in the pack.

How they thought this satisfied the clear fair and most misleading rules I am not sure. Also direct offer should only be used were a product is generically suitable, this is what the FSA were referring to.

This makes no mention of providers accepting a true execution only instruction from clients or directly authorised firms.

Execution only is not direct offer. It is not something that can promoted by definition, and as I stated above most will send you a letter at first saying you should take advice, if you then challenge this letter and insist on proceeding they will and do, issue E/O declarations and paperwork for the transfer to proceed.

I know from industry forums, that providers accept E/O business. I cant think of any of the top 5 that don't. I have seen the paperwork and processes they have in place.

Providers have an obligation to report the basis of advice to the FSA, they have 3 categories. Advised, Direct Offer (cat C) or execution only. These are distinct from each other.

dunstonh

unstonh, are you confusing E/O with Direct Offer promotions ?

I wondered if you were to be honest.

The insurance companies direct to public (not including salesforces) are direct and not execution only. Most of the insurance companies that still have salesforces wont let their staff do execution only or limit it to only certain areas. Indeed, a stance that is also quite common with many IFAs as well.

We have seen time and again providers refuse to accept occupational transfers without an IFA signing off on them first. The IFA can sign off on them under execution only but thats not the same thing. This is at odds with your comments. Personally, I havent tested it and would have no reason to. I am only going by what has been posted on this board many times by people who have been told their pension scheme wont accept a transfer without an IFA signing off on it and on the basis that the providers offering their products direct to public are not doing so on execution only basis but direct offer basis.

It will be interesting to know what maggpiecottage's view on this is given his business?

vbm

dunstonh wrote: »

I wondered if you were to be honest.

The insurance companies direct to public (not including salesforces) are direct and not execution only. Most of the insurance companies that still have salesforces wont let their staff do execution only or limit it to only certain areas. Indeed, a stance that is also quite common with many IFAs as well.

I agree

We have seen time and again providers refuse to accept occupational transfers without an IFA signing off on them first. The IFA can sign off on them under execution only but thats not the same thing. This is at odds with your comments. Personally, I havent tested it and would have no reason to. I am only going by what has been posted on this board many times by people who have been told their pension scheme wont accept a transfer without an IFA signing off on it and on the basis that the providers offering their products direct to public are not doing so on execution only basis but direct offer basis.

To clarify, I am talking a situation where by an individual will have an existing plan with a provider. The provider receives a letter from the client asking them to arrange a transfer in.

The provider will then issue a letter to the client telling them to take advice. This is alwasy the first stage, if a member then comes back and insists that they conduct the transfer on an E/O basis providers will proceed. Most people don't get passed the first stage and so there is a perception that providers don't offer the facility. When in fact they do.

If there is no existing plan, in place then I think we are in agreement.