unable to transfer protected rights?

dunstonh

The other problem is that usually none of these providers will accepot funds smaller than 100k.

Yes they will.

Estimated by whom?

It was in the financial press about 2 weeks ago. It was referring post A day applications.

Of course if you are talking about SIPPs used by IFAs you would be correct as IFAs are not authorised to advise on most types of investment allowed in SIPPs so they would only recommend ones where they could make money (eg Standard Life).

Advising on SIPPs which contain non-regulated or non packaged investments is no problem for any IFA. They just cannot give advice on the investment inside. They can give advice on the SIPP to hold it though.

jem16

silverfoxuk wrote: »

I'm not sure EdInvestor is particularly anti-IFA. Does that make dunstonh pro-IFA?

Some of Ed's posts come across that way unfortunately.

Isn't it healthy and enriching to get some thoughts from another angle as well?

Yes it is healthy and enriching and I do enjoy hearing both points of view. When it is kept to that both sides put across very valid points. In fact it would be a very dull board without Ed & Dunstonh's "little discussions."


However I felt the bit about only recommending something because they make money from it was unnecessary and came over badly.

dunstonh

There are at least 17 personal pensions that will do income drawdown with protected rights. 10 of which will do funds of less than 50k, 4 which will do less than 20k. 3 will do less than £1000 technically (i say technically because you wouldnt do drawdown on small amounts).

EdInvestor

dunstonh wrote: »

There are at least 17 personal pensions that will do income drawdown with protected rights. 10 of which will do funds of less than 50k, 4 which will do less than 20k. 3 will do less than £1000 technically (i say technically because you wouldnt do drawdown on small amounts).

Could we have the names of these providers please? It would seem the situation has changed radically in the last month.

Browntrout_2

I have an £8K Protected Rights Fund which I moved to Widows and then chose from a range of funds incl. Invesco Perp Income etc

EdInvestor

Hi Browntrout,

Is the money in income drawdown though? THis is where the main problem lies, it is possible to access rewasonable investments for PR money outside a SIPP in the accumulation stage: the problems set in when you want to get the money out!

Re the changes in SIPP rules to take PR money....

It's been coming for about 4 years. Still not here and no info on when it will be.

Just to clarify on this, we are actually coming from quite a low base at the Department for Work and Pensions, whose officials are extremely conservative and regard protected rights money basically as belonging to the Government

Only two years ago they planned to introduce legiuslation specifically banning the movement of any PR money into a SIPP and it was only after a concerted campaign by investor groups and the industry that they backtracked on that.

They then argued that they couldn't let the money into SIPPs because they weren't regulated. The Treasury and the FSA ( who are both happy to allow the PR money into SIPPs) duly went ahead and regulated SIPPs, as of a couple of months ago.

Now the DWP wants to wait until it has finished an investigation into annuities, which will take until the end of the year.

To help things along, the Treasury has now inserted a power into the Finance Bill to enable it to change the rules on this issue, without having new legislation.So basically I think there's reasonable grounds for optimism that if the DWP doesn't see reason by the end of the year, the Treasury will do the job instead.

It has been somewhat of a struggle to get the old dinosaurs at the DWP to see reason, and although there does now look to be light at the end of the tunnel, all those waiting for action on this matter should feel free to keep the pressure on and complain publicly at regular intervals.

We don't want anyone to think the issue has gone away.

DavidLaGuardia

EdInvestor wrote: »

Could we have the names of these providers please? It would seem the situation has changed radically in the last month.

Ed the situation has not changed , its been the case virtually as long as drawdown has been around (although watch some companies who say they accept protected rights with drawdown as they mean as a separate transfer policy that is not taken as drawdown).

EdInvestor

David

Of course I know PR money can be put into drawdown.But most insurers require a minimum of 50k-100k in total fund to do it.

Dunstonh is claiming small funds are now being accepted by companies other than Selestia (which he alleges will take small PR pensions on their own for drawdown).So it would be nice to know which ones.

scouser_in_exile

Post Edited

dunstonh

I know Selestia do as I have used them a number of times. However, independent research also shows they are not alone. I just think they have the best product to do it. Hopefully that will not change with the skandia merge as the Skandia product is inferior. I need to bug my Selestia rep for news.