LV SIPP customers - watch out!

Gezornenplat

I've had a Self-Invested Pension Plan (SIPP) with LV Retirement Solutions for the past 12 years. As trustees, they charge around £1,500 a year for which they do practically nothing. Recently I tried to get 24K transferred in from another pension fund and asked LV for some really basic information so I could complete the form. No dice! I was told 'It's not our policy to allow customers to do this themselves - it has to be done via a registered IFA'. Their explanation is that an IFA guarantees 'best advice' -but to me this just feels like a very convenient and self-serving justification for giving lousy service to their customers and padding the bank accounts of their 'friendly' IFA's. (Listening to IFA 'best advice' - in hindsight clearly motivated by the commissions they earned - has cost me over 15K in the past few years and is the reason I now want to do this stuff for myself!). Has anyone else had problems like this with SIPP providers - LV in particular? I for one would never, ever use them again. More broadly, shouldn't they be legally obliged to give me this basic info on what is - after all - my own pension?

GhIFA

What is the information that you asked for?

dunstonh

I was told 'It's not our policy to allow customers to do this themselves - it has to be done via a registered IFA'.

If the existing scheme is an occupational pension then most will not allow a transfer without an IFA signing off on it first. If the provider transacts business only via IFAs and doesnt have a retail arm then it cannot accept new business via a retail method it does not offer.

to me this just feels like a very convenient and self-serving justification for giving lousy service to their customers and padding the bank accounts of their 'friendly' IFA's.

LV dont have IFAs. They wouldnt be IFAs if they did. To have a retail arm, they would need to have the necessary permissions in place and the capital requirements, the FSCS, FSA and FOS levies would be increased and they would need the staff and supervisors to be increased as well as compliance. All that would need to be factored into their costs.

More broadly, shouldn't they be legally obliged to give me this basic info on what is - after all - my own pension?

no

gadgetmind

What kind of pension are you transferring in? Some are easy to move, others are close to impossible, and rightly so.

How are the fees structured?

Gezornenplat

GhIFA - the information asked for was as follows:

1) Is my Namulas SIPP a scheme which was fully approved by HMRC prior to 6 April 2006 and became a registered pension scheme on that dat under chapter 2, part 4 of the Finance Act 2004 (as amended)
OR
Is it a registered pension scheme under Chapter 2, Part 4 of the Finance Act 2004 (as amended)

2) Under what legislation is the 'receiving scheme' (ie my Namulas pension) approved?

3) What is the HMRC Approval / Registration number?

4) What is the appropriate scheme number (if applicable)

5) If the scheme does NOT have an HMRC Approval / Registration number - what type of scheme it it?

6) Who is the 'receiving scheme' authorised signatory? (ie their name)

Finally
7) What are the cheque payment details for the receiving Namulas account into which the monies need to be paid - account name, sort code & number? (Or alternatively BACS details & ref)

All stuff I would expect it to be my right to know - since it's my own money, not the IFA's, that they are managing!

Gezornenplat

gadgetmind:

The money I am trying to transfer in comes from a Zurich pension plan linked to UK commercial property (great plan, not!) Zurich are not the problem - they have supplied me with transfer forms. It's LV that are being obstructive - specifically Namulas / National Mutual - whom they have recently acquired.

Gezornenplat

Dunstonh:

This is NOT an occupational pension - it's my own SIPP. That's why I am so ****ed-off about being treated like this. I really want to know why a company like LV 'Retirement Solutions' thinks it can sit on a huge pile of my money and deny me basic information when I ask for it. It's my money they are holding here - not their's and not any IFA's In my view they should not have the right to treat people in this way and I intend to find out what's going on!

gadgetmind

If you're happy with managing your own investments, why not start a SIPP with SIPPDeal, Hargreaves Lansdown, BestInvest, or similar and transfer the lot?

I've moved four pensions for me and three for my wife in the last couple of years just by filing in a few simple forms.

GhIFA

I'm a bit confused by your constant references to this not being an IFA's money, nobody seems to be suggesting it is.

LV Retirement Solutions are IFA distribution only, not retail - this is the reason they will only take a transfer via an advised process and not direct, as explained by Dunstonh. The information you are after is fine, however, they won't enter into any kind of discussion regarding transfers directly so there can be no confusion that it is straying into advice areas should a complaint be raised later. It is risk-mitigation based on their business model, which they are entitled to do. The DIY option is of course open to you as mentioned by Gadgetmind.

gadgetmind

Of course, if the OP does go DIY, they need to know the basics of portfolio construction.

This would help avoid mistakes such having too large an allocation to commercial property. Out of interest, where did the suggestion for this allocation come from?

Gezornenplat

Thanks for the advice, Gadgetmind - I will follow it up and seek a better SIPP trustee.

As to the lousy advice to overweight on UK property at exactly the wrong moment - it came from a licensed IFA. Maybe not a very good or 'straight' one?