Friends not receiving advice on Pension-Can they claim back the advisor's fee?

bob_dob

Hi,
Im extremely niave when it comes to Pensions so please don't laugh but i do have a question.

I have read that some brokers for fund managers are reimbursing people a rebate of their commission they have paid and the reason for this is for not giving any advice.

Could this be done for Pension advisors who haven't given any advice for years, as in my friends case with their GPP pensions?

bob_dob

Hello anyone?

jjgreenwood

I did this successfully with one telephone call to fidelity for a non pension related investment stating I was not receiving advice anymore so yes is the answer.

bob_dob

Ah but Pensions may be a different kettle of fish?

dunstonh

I have read that some brokers for fund managers are reimbursing people a rebate of their commission they have paid and the reason for this is for not giving any advice.

That is incorrect if you are referring to past payments. It is correct if you are referring to DIY brokers who dont give advice or the same level of consumer protection and therefore you pay less for it.

Could this be done for Pension advisors who haven't given any advice for years, as in my friends case with their GPP pensions?

The vast majority of pensions pay no trail/renewals.

Aegis

jjgreenwood wrote: »

I did this successfully with one telephone call to fidelity for a non pension related investment stating I was not receiving advice anymore so yes is the answer.

Has that actually resulted in you being paid a proportion of the annual charges periodically since then? Investment providers are notorious for cancelling an adviser's agency on such requests but subsequently keeping the trail commission themselves instead of rebating anything.

If they haven't started rebating, you can go to a discount broker and ask them to take over the agency, rebating any trail commission to you. Cavendish Online seems to be offering the best deal for this at the moment.


With regard to pensions, it's a lot less likely, as in many personal cases the commission is paid up-front and with GPPs the contract is between the employer and the adviser, not the scheme member. That said, there are other options out there if the commission can't be reduced on the current policy.

bob_dob

So, is my friend correct in thinking that he should have received advice regarding his pension from the GPP financial advisor in the 8 years he has paid into his GPP?

sandsy

bob dob, it depends entirely what the adviser agreed with the employer as, with GPPs, the advisory contract is normally between the adviser and the employer rather than between the adviser and the employees.

If the adviser agreed with the employer to give individual advice to employees there may be a case for saying your friend should have received advice, otherwise not.

dunstonh

So, is my friend correct in thinking that he should have received advice regarding his pension from the GPP financial advisor in the 8 years he has paid into his GPP?

Depends. If he didnt want to see the adviser and just wanted it set up then the adviser can do that. Also, the adviser may not be employed to give advice but just deal with administration.

Also, over the 8 years suggests you are indicating on-going servicing (?). You only get ongoing servicing if you employ an adviser on an on-going servicing basis.