Mis selling of pension

ViolaLass

atush wrote: »

But presumably are less savvy?:D

I'm probably more financially savvy than the average police officer and the average teacher but then, I went into maths teaching because, among other things, I despaired of people making bad decisions through a lack of mathematical understanding so I'm different.

dunstonh

feesarefare wrote: »

Although we have never offered insults as part of our service so being Restricted wont alter any client or potential client experience.

How much extra PI cover does delivering insults require?

You have chosen to restrict the possible services, providers and investments to your clients. I have not. That is the only difference between IFA and restricted.

JoeCrystal

looksliketrouble wrote: »

I now no longer know:

a) When I can retire
b) What's the final lump sum of my pension will be
c) What the yearly pension will be.

Sure you do. Just read the scheme booklet and make an educated estimation. You know the amount of years and what salary you got so far. Just think as "At least this amount. In real terms") No one knows what they are getting but because you got defined benefit scheme (which is still one of the best in the country and extremely cheaply for you), you can estimate with far more certainty than a guy with his own private pension scheme. I have no idea what I am getting and according to various calculators and in spite of paying 25% of my wages (£312 per month) and IF I am luckly, and if the market perform well in long term in next thirty years, I might get about £5,000 per years (at 5% growth and such).

Ulimately, I have not got a clue just how much I am going to get in the end. Fund value could fall, annnuity rates as well. You on other hand acutally got pretty good idea.

Cheers,
Joe

dunstonh

No we havent , as you are well aware the FSA introduced new rules- one of them being thats because we chose as a business 3 years ago we didnt want to recommend Structured Products and UCIS we now have to call ourselves restricted. So how does this differ to you Dh ?

You have and you have just confirmed you have. So, how can you say you havent?

Unlike your decision to not offer your clients those things, I have chosen to leave them on the table. UCIS is a bit of a red herring as the FSA dont expect IFAs to be offering them. Structured products arent a great product most of the time although every now and then a good one can pop up. So, i wouldnt want to remove the ability to offer one just in case.

jem16

feesarefare wrote: »

You know what I meant .....our business hasnt changed for the last 3 years...its the FSA that has deemed we have to call it something different.

Rules and regulations change all the time. Presumably the FSA haven't forced you to remain restricted because of a decision 3 years ago and that you could choose to change your business if you wish?

We couldnt see the point of paying massive PI premiums on the off chance a decent Structured Product might come along occasionally. If it did we would just refer them to the IFA next door.

Which is fair enough. It's a business decision. However it is your decision and one which presumably you could have reviewed?

jem16

feesarefare wrote: »

We did. We review our business practices every month. It's all part of firm being awarded the British Standard BS8577.

So it is your decision to be Restricted and not the FSA forcing it on you. No problem with that.

I'm aware of lots of IFAs that have Pi cover that prevents them from recommending structured products etc yet are still calling themselves IFAs .

If it's FSA rules, then how would they be allowed to do so?

jem16

feesarefare wrote: »

They are not allowed

Then I hope you are reporting it to the FSA.

mania112

So the difference between an IFA and a Restricted adviser is simply inability to recommend Structured Products and UCIS?

Surely the saving in PI is minimal in that case, considering how rarely the average IFA would recommend a SP?

There must be more differences?

mania112

It just surprises me that Structured Products (of all things) are the difference between IFA and RFA.

How much do you save in PI cover?

Presumably you can still recommend a Protected Deposit SP?

mania112

You could still transfer a final salary pension into a SIPP and help the client invest in Carbon Credits or Offshore Property...

(the most bonkers thing I could think of!)