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Financial Advisor Mandatory
lochinvar_2
Posts: 2 Newbie
Hello,
I have been advised by my legacy pension provider that my current plan does NOT include the option to envoke the new cash in 'flexi' plans that come into effect on 5th April 2015.
I can, however, swap to an alternate plan, with them, that will support the option, but I'm being told that their 'STANCE' is that I must go through a Financial Advisor to swap the plan.
Two questions:
1. Can they legally enforce this stance? (forcing you to spend money on an advisor for a fairly straightforward instruction).
They do advise that it will be possible to DIY, with them, "In september". not sure why not now.
2. Would it be simpler and quicker to swap the whole pension to a new provider that doesn't stipulate mandatory financial advisor input?
I have been advised by my legacy pension provider that my current plan does NOT include the option to envoke the new cash in 'flexi' plans that come into effect on 5th April 2015.
I can, however, swap to an alternate plan, with them, that will support the option, but I'm being told that their 'STANCE' is that I must go through a Financial Advisor to swap the plan.
Two questions:
1. Can they legally enforce this stance? (forcing you to spend money on an advisor for a fairly straightforward instruction).
They do advise that it will be possible to DIY, with them, "In september". not sure why not now.
2. Would it be simpler and quicker to swap the whole pension to a new provider that doesn't stipulate mandatory financial advisor input?
0
Comments
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1. Can they legally enforce this stance? (forcing you to spend money on an advisor for a fairly straightforward instruction).
Yes they can. If they do not retail to public then they need an intermediary to do it. The intermediary takes on the liability for future complaint.They do advise that it will be possible to DIY, with them, "In september". not sure why not now.
It requires the setting up of staff, management, compliance, regulatory requirements etc. They cant just decide to do this overnight.2. Would it be simpler and quicker to swap the whole pension to a new provider that doesn't stipulate mandatory financial advisor input?
Yes.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 -
Thanks for your response and for the honest answer to question two (considering such action does not bode well for the future of independent F.A.'s ).0
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Would it be simpler and quicker to swap the whole pension to a new provider that doesn't stipulate mandatory financial advisor input?
Yes, but whether this would be better for you depends on many factors.
Note DIY platforms can be cheaper fee wise, but they can also be more expensive, so you need to do your research.
BTW, is your current provider Friends Life? The Telegraph had a big chart of who would (and wouldn't) provide support for which aspects of the new rules. Friends Life had "dunno" down for everything!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Thanks for your response and for the honest answer to question two (considering such action does not bode well for the future of independent F.A.'s ).
The future of IFAs has probably never been stronger. A lot of people ceased to need the service of an adviser after they retired. They bought their annuity and that was it. Going forward, the need for ongoing advice is greater than it was before. That doesnt stop some of those going DIY but it does extend the service life of a client to both advisers, product providers and fund houses.
There is room for DIY and advice.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
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