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Why different rates to transfer pensions?
Comments
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Right. But in this case at least one person is working on trying to educate them about that option so that they know it's there and might pursue it.In reality, that wont happen often and they have probably used a conversion ratio of x% knowing that not all will transfer over.
Depends on exactly what it said. A warning about investment values going down as well as up is standard. Even where the IFA is selecting investments, the IFA isn't actually responsible for the investment performance, unless the investments were inappropriate for the client in some way, like risk levels too high. If the adviser wasn't picking the investments then it wouldn't be surprising, since the adviser has no responsibility for investment performance at all, except to try to get a sufficient range of investments to meet the needs of the person being advised to transfer.Special_K10 wrote: »Also, please forgive my naivety, but a friend stated that when he transferred his pension with this adviser, he had to sign something that said that, in basic terms, if the new SL pension was to fail miserably, that he would not be held liable for it. This is standard practice?
A not uncommon situation is for people to become unhappy with investment performance during one of the routine market drops. A one year drop of perhaps 20% in the main UK market every few years and perhaps 40-50% once a decade is normal. But for those who don't know that investments look like a rollercoaster in reverse it can give a very poor impression just because they don't know how things work Even for those who do it's unpleasant.0 -
Sigh..............ok, please bear with me on this as I have now been updated on the situation by a friend. Here we go:
My friend (Person A) has definitely seen his friend's (Person
pension transfer details and Person A had £10,000 more in his pension than Person B but Person B was being charged 5% whereas Person A was being charged 3%. Another employee (Person C) had less than both of them but was being charged 1%.
When Person A confronted the FA about this the FA said "I can make exceptions".
I asked Person D if the FA actually said "If you sign this and it goes wrong there's no comeback" and he said "No, not in so many words. More of a 'Sign this and it'll keep me out of the s**t".0 -
Special_K10 wrote: »Also, please forgive my naivety, but a friend stated that when he transferred his pension with this adviser, he had to sign something that said that, in basic terms, if the new SL pension was to fail miserably, that he would not be held liable for it. This is standard practice?
That would be the case if the transaction was execution only / direct to provider. I.e. the adviser was not giving advice. That is normal for non-advised cases. I have done it on cases where someone knows what they want and advice is not worth it and its a transaction that is not high risk or likely to be a problem for the person.My friend (Person A) has definitely seen his friend's (Person pension transfer details and Person A had £10,000 more in his pension than Person B but Person B was being charged 5% whereas Person A was being charged 3%. Another employee (Person C) had less than both of them but was being charged 1%.
When Person A confronted the FA about this the FA said "I can make exceptions".
It is common to operate tiered percentage charges that reduce as the amount gets bigger. Also, if the adviser has other business with that client then the total position would be taken into the account and not just this transaction. e.g. if the adviser also looks after their ISA and investments as well as the pension.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Special_K10 wrote: »My friend (Person A) has definitely seen his friend's (Person pension transfer details and Person A had £10,000 more in his pension than Person B but Person B was being charged 5% whereas Person A was being charged 3%. Another employee (Person C) had less than both of them but was being charged 1%.
Imho this FA seems a bit of a slippery snake. from what you say I would struggle to trust him.
The use of commission was meant to have been outlawed.....0 -
Imho this FA seems a bit of a slippery snake. from what you say I would struggle to trust him.
What facts do you have to say that?The use of commission was meant to have been outlawed.....
Where does commission come into it? Scot Life is a fee based contract.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
What facts do you have to say that?
Where does commission come into it? Scot Life is a fee based contract.
well he seems to be charging each pension scheme holder an arbitrary % (if this FA was appointed by the OP's employer I doubt any of the employees have any other investments with him...)
Surely in this case charging a % is effectively just a commission. Something that was meant to have been outlawed....
Good of you to find the time from your busy job to defend the financial industry.0 -
well he seems to be charging each pension scheme holder an arbitrary % (if this FA was appointed by the OP's employer I doubt any of the employees have any other investments with him...)
Group scheme IFAs frequently get other business from people.Surely in this case charging a % is effectively just a commission. Something that was meant to have been outlawed....
Commission was paid by the provider. Scot Life dont pay anything to the adviser. The fee is paid by the individual.
Perhaps when you get a job you will have less time to post silly comments like that.Good of you to find the time from your busy job to defend the financial industry.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I think the OP should be asking an hourly fee for transferring this pension. I wouldn't think it should cost 10 times as much to move a £100k pension as opposed to a £10k pension.....0
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Thank you Dunstonh. However, the tiered rate would explain the difference between Person A and Person B but not why Person C was charged less than both?
I can confirm that the FA does no business with anyone else.
After all the complaining about the strange carying rates, a notice has just appeared stating that the FA has now, as a gesture of goodwill, agreed to cap the charges for transferring the pensions to £500. Now, Person E who was due to pay £1300 is happy.....but wants to know why the FA has done this?0 -
Special_K10 wrote: »After all the complaining about the strange carying rates, a notice has just appeared stating that the FA has now, as a gesture of goodwill, agreed to cap the charges for transferring the pensions to £500. Now, Person E who was due to pay £1300 is happy.....but wants to know why the FA has done this?
An IFA is a bit like a car salesman. If some mug goes to an IFA (or car salesman) and doesn't haggle they will get well and truly fleeced.
It's sad and it's not right, but that's the way it is....0
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