Pension miss sold?

beezor

In April 1989 I was assured by a local IFA that a move from my company pension was the 'smart' thing to do.
Since then the pension fund with LAS got transferred or bought by Brittania Life and then ended up with Alba Life and devalued.
I have had no advice from my IFA who is still supposed to be managing the thing except to transferr my payment into an ISA (which I suppose he is also getting a cut from!).
I mistakenly assumed the IFA would move my pension pot into better performing funds to increase the growth but alas no.
I've seen a company (Whitehall Randall) that will take to task the IFA to obtain redress from which they will extract 20%-and now am very wary about the whole industry.
Is there anything I can do?
Which route to take please?
Thanks.

dunstonh

I have had no advice from my IFA who is still supposed to be managing the thing except to transferr my payment into an ISA (which I suppose he is also getting a cut from!).

Are you employing the IFA on a servicing basis or transactional basis? what does your agreement say?

I mistakenly assumed the IFA would move my pension pot into better performing funds to increase the growth but alas no.

Not if you are not employing a servicing IFA.

I've seen a company (Whitehall Randall) that will take to task the IFA to obtain redress from which they will extract 20%-and now am very wary about the whole industry.

The claims management industry is a disgrace. The lies they tell and the percentages they take are massive. Plus, with pensions, if you are successful in your complaint, the redress is usually paid into pensions and not to you in your hand. So, you will have to pay that 20% (plus VAT) out of your own pocket. Also remember that the complaints process is free of charge and complaints companies have lower success rates than personalised letters.

Why pay to use a claims company to do something you can do yourself.

Is there anything I can do?

Have you talked to the IFA to tell them your concerns?

Which route to take please?

All pensions between 1988 and 1993 had to go through what is known as the pension review. You would have been contacted in the 90s to verify that the transfer you did was the right advice. This would have involved you filling in a questionnaire to verify the information. Based on those answers and the pension figures, the review would have decided if it was the correct advice or not. What was the outcome of the pension review in your case? If you cant remember then ask the IFA as they had to keep a record of the pension review.

now am very wary about the whole industry.

There are between 20,000 and 30,000 IFAs. The IFA distribution channel has the lowest complaints of all the distribution channels. Its not perfect but nothing ever is. Things today are certainly vastly superior to 1989. So, dont measure what over happened 20 years ago by what happens today. It was a different world back then.

beezor

There is no written agreement and no questionaire has been filled in,no review undertaken and no written correspondance from the IFA.
I wrongly assumed he was keeping track of it.

dunstonh

You should now go back to the IFA and ask them why your pension was not reviewed under the pension review. Either they will produce the review documents or they will now have to undertake the review if for some reason you were missed (unusual but not unheard of). You have clearly fallen out with this IFA. It may be a misunderstanding of the services you want and what you are getting but it looks like its gone beyond repair. You may wish to consider another local IFA who could guide you through the process of the review as well discussing the services you want. Remember the term "IFA" covers the authorisation only. It does not cover all the different service levels or business models that exist now. If you want a servicing adviser, then there is no point using a transactional adviser.

beezor

I did'nt know there were servicing advisors or transactional ones.
Perhaps that has changed also in 20 years.
I believe he is named on my pension doccuments and also getting paid from the ISA I was told to pay into instead of the pension scheme.
Incidentally the ISA isn't doing a lot in the present fund either!
What is the procedure after I ask why it has not been reviewed?
What happens at the review?
Anything-or will I just get fobbed of somehow?

dunstonh

I did'nt know there were servicing advisors or transactional ones.
Perhaps that has changed also in 20 years.

Its a world away from 20 years ago. Modern plans are so much different and the way IFAs can service you and the plans is a much different.

What is the procedure after I ask why it has not been reviewed?

It may be a point to raise a formal complaint.

What happens at the review?

It looks at the circumstances at the point of sale to see if that was correct advice or not.