Need advice in transferring my pension?

Your_Hero

pipkiksass wrote: »

Anyone can become an authorised representative (AR) of an independent firm or network. Without being directly authorised by the FCA, this individual can then sell legitimately sell their services as an IFA.

An AR can only be called independent if their network is independent.

Edit: And what do you mean anyone can become an AR of an independent firm or network? This isn't like your Avon representatives who can join up to be a Rep and sell their products.

- even if their terms of business state that they offer independent advice, that doesn't mean that they are personally authorised to do so by the FCA.

Simply not true. The terms of business is a regulatory document and it must show what type of advice they give.

Being an AR or Directly Authorised (DA) does not determine the Independent status. You've misunderstood it by a long way. Independent means the firm is not restricted in the area of advice they give, nor on the products/providers recommended.

bmm78

pipkiksass wrote: »

even if their terms of business state that they offer independent advice, that doesn't mean that they are personally authorised to do so by the FCA.

The FCA don't "personally authorise" anyone to offer independent advice. The controlled function required (CF30) applies to all advisers, regardless of whether the firm is providing independent or restricted advice. The FCA do not have a separate license for Independent advice, and it is upto the individual firm/network to decide what level of service they offer. It is theoretically possible to provide independent advice to a client in the morning, restricted advice to one if the afternoon, and deal with it on a case by case basis. However, most will make a decision at firm level and apply that across the board.

The FCA require firms to provide details of the type of advice (Independent or Restricted) provided at the end of each reporting period, but firms don't need to notify the FCA or obtain approval before providing independent advice as opposed to restricted.

Networks are taking full responsibility for the actions of their ARs, so there is something seriously wrong if they don't have a thorough due diligence process on application. When they submit the Form A to the FCA for approval, they need to be satisfied that all the information is correct as they are liable for it. Most networks I've come across take this very seriously, although there are probably one or two exceptions.

SJD48

Personally have no faith in IFAs, all they seem interested in as making as much money as they can and push you towards the places where they want you to go (probably for they're own benefit). Had one round last week and all he was interested in was getting my money to either of two fund managers without actually answering the questions I got him round to answer.


I have good knowledge of investments and have transferred some DC schemes from previous employers to my existing SIPP with no fees. For there I pick bonds/equities or if not comfortable in selecting direct assets look for broad collective funds managed my all the big fund managers. As an example AXA Framlington Managed Balanced would give a range of investments and would be used by companies to invest for their staff pensions. Plenty of these types of funds around.

addedvaluebob

Your_Hero wrote: »

An AR can only be called independent if their network is independent.

Edit: And what do you mean anyone can become an AR of an independent firm or network? This isn't like your Avon representatives who can join up to be a Rep and sell their products.

Being an AR or Directly Authorised (DA) does not determine the Independent status. You've misunderstood it by a long way. Independent means the firm is not restricted in the area of advice they give, nor on the products/providers recommended.

An IFA or AR offering restricted advice won't do anything you can't do yourself with a bit of research and save the £800 up front fee and the ongoing 0.75% on your pension transfer.

Do you really want to give away your money for someone to fill in a form?

There are plenty of networks for IFA's to join and if you don't think it can be like becoming an Avon rep then look up 'Financial Ltd FCA'
on google to see how simple it can be. Most IFA's will offer products from a selected panel of providers and one of the largest AR networks was recently fined because they were getting payments from providers to be on their panel they did not disclose to customers when recommending these providers to the public.

I would double check with Fidelity about continuing contributions to your plan, what you have been told doesn't make sense and may have been misinterpreted by the individual you spoke to. If it is in fact the case then you could consider leaving the existing plan where it is and starting another regular plan with another provider as this would spread the risk as someone else has suggested.

Whether the fee is calculated as a flat fee, percentage of the fund value or hourly rate, don't waste your money.

Your_Hero

addedvaluebob wrote: »

An IFA or AR offering restricted advice won't do anything you can't do yourself with a bit of research and save the £800 up front fee and the ongoing 0.75% on your pension transfer.

An IFA does not offer restricted advice. You are contradicting yourself here.

Most IFA's will offer products from a selected panel of providers and one of the largest AR networks was recently fined because they were getting payments from providers to be on their panel they did not disclose to customers when recommending these providers to the public.

You've just confirmed that you know very little about networks and ARs, and indeed the difference between independent and restricted advice.

I believe in your example there you are referring to 'Sesame' as the Network that was recently fined large sums. They are not an independent network and instead offer restricted advice. Under a restricted advice structure, it is likely that they have a financial interest to recommend and use certain providers and place them on their "panel", because either the providers "pay to play" or they own shares in the network. This is not always the case though.

IFA firms do not use "panels" because they have no ties hence the term "independent".

dunstonh

Do you really want to give away your money for someone to fill in a form?

Is that all it is? I must tell the regulator and ombudsman that as they clearly have a different view and the hundreds of pages of documents we have to prepare for these things are clearly not needed according to you.

Most IFA's will offer products from a selected panel of providers and one of the largest AR networks was recently fined because they were getting payments from providers to be on their panel they did not disclose to customers when recommending these providers to the public.

Wrong. That network was fined for one of their propositions getting payments from providers. That was a limited panel proposition that had nothing to do with either their IFA proposition or their whole of market proposition. They operate three models (limited panel, whole of market and IFA). it should be noted that the FCA used that particular network research model for the IFA and whole of market arms as an example of good practice for IFAs in the thematic review it did earlier in the year.

DaveMcG

You should wait till your new employer offers a pension and then ask them about transferring in. You don't need to transfer out of your old scheme and I can't see why your former scheme would suggest that you should.

Transfer advice is too costly in relation to your fund size fund and is unlikely to be good value. Remember any truly independent advice should include a recommendation not to transfer.

addedvaluebob

Your_Hero wrote: »

An IFA does not offer restricted advice. You are contradicting yourself here.

You've just confirmed that you know very little about networks and ARs, and indeed the difference between independent and restricted advice.

I believe in your example there you are referring to 'Sesame' as the Network that was recently fined large sums. They are not an independent network and instead offer restricted advice. Under a restricted advice structure, it is likely that they have a financial interest to recommend and use certain providers and place them on their "panel", because either the providers "pay to play" or they own shares in the network. This is not always the case though.

IFA firms do not use "panels" because they have no ties hence the term "independent".

I think the key word is 'or' in the sentence. There was no contradiction. They still won't do anything you can't do yourself in the context of this thread

It is always the same when I take a view that financial advisers on this forum don't like, apparently I don't know anything so other readers will have to make up their own mind as to who is protecting whom's interest here, I don't need criticism from an IFA.

Of course IFA's use panel's. It is massively naive and disingenuous to suggest that the average IFA or IFA network actively researches every single provider of every product to come up with the best of the best. Amazingly enough these panels often include the companies that hold shares in the IFA network the general public are just not aware of the potential limitations behind the scenes.

dunstonh

They still won't do anything you can't do yourself in the context of this thread

Same goes for a any role you employ someone to do. You are paying for that person who has the knowledge and tools. Some people can DIY quite successfully. Some people try DIY and make a right pigs ear of it. Anyone can try anything. Doesnt mean they will do it well though.

It is always the same when I take a view that financial advisers on this forum don't like, apparently I don't know anything so other readers will have to make up their own mind as to who is protecting whom's interest here, I don't need criticism from an IFA.

Given the misinformation you have given and your continuous anti adviser posting, I think it is fair to point out your errors and your bias. The advisers posting here are not being paid by posters. They contribute at no cost to other posters. You have an anti adviser bias. You gain personal satisfaction at putting people off.

Of course IFA's use panel's. It is massively naive and disingenuous to suggest that the average IFA or IFA network actively researches every single provider of every product to come up with the best of the best.

Again, showing your lack of knowledge. A lot of this is software driven but the software is whole of market.

Amazingly enough these panels often include the companies that hold shares in the IFA network the general public are just not aware of the potential limitations behind the scenes.

What panels? As you are making accusations of fraud, I think it is fair that you provide evidence to support it. Or perhaps we should just treat it like the other points you have raised and been wrong about it as well.

pipkiksass

Your_Hero wrote: »

An AR can only be called independent if their network is independent... And what do you mean anyone can become an AR of an independent firm or network?

I was simply advising the OP to check out the personal qualifications of their IFA, if they go down that road. I'm pretty sure I could convince an independent network to authorise me to represent them (I have various CII qualifications, but have no intention to give advice). I would then be able to state that I offer independent advice in my ToB.

Your_Hero wrote: »

Being an AR or Directly Authorised (DA) does not determine the Independent status. You've misunderstood it by a long way.

I don't believe I've misunderstood at all. I'm well aware of what independent means (replaced Whole of Market on 01/01/2013). As above, I was simply suggesting to the OP that they should check the personal qualifications and credentials of their adviser, as "CFP" or "Dip CII" mean far more than "IFA".

IMHO.