Must I use an IFA?

Catweasel_2

The IFA who set up my pension fund has sold his business and his database of clients to someone I do not know from Adam and with whom I have had no contact.

I object to being sold in this way, I have no confidence in the financial services industry anyway and wish to deal directly with the pension company but they have told me that I must use an IFA. I am not asking them for advice but am trying to give instructions regarding the administration of the fund.

I wish to ask if there is a legal requirement to use an IFA for this purpose or is the company merely trying to force me to hand out jobs for the boys.

If there is no legal requirement how can I compel them to accept my instructions?

Thanks in advance for any replies.

dunstonh

I object to being sold in this way

It happens in every profession so why should financial services be any different?

I have no confidence in the financial services industry anyway and wish to deal directly with the pension company but they have told me that I must use an IFA.

That is correct with many companies.

I wish to ask if there is a legal requirement to use an IFA for this purpose or is the company merely trying to force me to hand out jobs for the boys.

Companies have to inform the FSA how they intend to transact their business. Some companies will choose not to deal direct with consumer as that saves having all the regulatory issues that come with that.

If there is no legal requirement how can I compel them to accept my instructions?

change provider or get a new IFA who can take over servicing rights of the policy

EdInvestor

What do you want to do? Sometimes companies refuse to do what DIY customers want because they are about to do something silly ( such as move money around and lose a valuable guarantee) because they don't understand what they are doing.

Catweasel_2

I wish to take some of the tax free lump sum that is available and increase the overall monthly pension that I am currently being paid.

I know that this will deplete the fund but it only represents a very small proportion of the alternative overall financial plans that I have made for my future.

exil

The company could be done for mis-selling if they do not insist on you getting advice.

Catweasel_2

I made it clear in the letter that I was giving them an instruction under my own responsibility and that I was not asking for their advice.

exil

You misunderstand me. The pension company can be accused of mis-selling if they sell you a product (even if you've asked for it) without knowing you have received advice from an independent source. It's backside-covering basically, but given the experience with endowments and pensions in the past I can understand them being cautious.

EdInvestor

Catweasel wrote: »

I wish to take some of the tax free lump sum that is available and increase the overall monthly pension that I am currently being paid.

I take it you are already in (phased?) income drawdown? In which case as long as the income you want to take is within the GAD limits (see below), then there's no reason they should object to this.

http://www.hmrc.gov.uk/pensionschemes/gad-tables-instructions.pdf

JoeK_3

You should be aware that a lot of companies do not employ advisers, only administrators. As a consequence they rely on receiving instructions from a qualified Independent Financial Adviser (IFA), so if anything should go wrong, they are not deemed liable.


What's wrong with the new adviser anyway? I bet you haven’t even met them!

Give them a chance at least.

JoeK

Catweasel_2

Yes, I am already in income drawdown that's why I am unable to see where the problem is neither can I see why they are refusing to make available the portion of the tax free lump sum that I have asked for.

No, I haven't met the advisor. I live in Spain and haven't been to the UK for a number of years neither am I likely to.

I also know that the same person was pushing investments in a Spanish Real Estate company which I know to be dodgy so, no, he doesn't even get a chance.

JoeK_3

Change your adviser then.

JoeK