Licenced for Section 32 policies?

Poppy_Golightly

My IFA cannot help me with cashing in my Section 32 Buy Out Policy as he doesn't have the necessary licence. I never knew there was a specific licence for S32 advice. I tried to get help from the Pensions Advisory Service (an oxymoron if ever there was one) to find out about the licence - transcript follows

14:44:03 Thank you for contacting the Pensions Advisory Service (TPAS). Our service provides information and guidance to members of the public on all pension matters. Our aim is to help people by making pensions as clear and understandable as we can so that you can make the decisions you need to make about saving for retirement. We do not deal with problems, complaints or disputes relating to state pensions and we do not give regulated financial advice. An adviser will be with you shortly to talk through your query with you.
14:44:13 You are now connected to Them
14:44:13 Them: Hello, you are through to Sally at the Pensions Advisory Service, how can i help?
14:45:48 Me: my IFA says he cannot help me cash in my Section 32 buyout plan (under new pension rules) as he doesn't hold a licence for section 32 advice. Where do I find an IFA who holds such a licence? Thanks
14:47:27 Them: i can't actually pinpoint you to a specific adviser that can, but you can try the directory on the money advice website and asking the advisers that appear on the list whether they can cover section 32
14:47:44 (URL Pushed) https://directory.moneyadviceservice.org.uk/en
14:48:19 Me: So basically I have to keep emailing IFA's until I find one that has a licence?
14:48:37 Them: i guess so
14:49:22 Me: What is the licence called? Does it have a special name?
14:49:51 Them: to be honest i am not aware of the licence or what it is called
14:50:20 but just ask whether they can offer advice surrounding your section 32 policy
14:51:41 Me: I am through to the PENSIONS Advisory Service?
14:52:18 Them: yes you are
14:55:01 Me: I am sorry but your reply/advice has been of no help whatsoever. Can you find someone who does have the knowledge to help me, thanks.
14:58:56 Them: i provided you with a financial adviser directory and from there you can ask advisers whether they can offfer advice on section 32 policies
15:00:22 but uhm you can end the chat, start a new conversation and then get through to someone else
15:00:48 or you could try ringing our helpline
15:01:48 0300 123 1047
15:03:28 The chat session has ended




I keep running up against brick walls with this pension. I have managed to get a transfer value from the pension company but because it is over a certain amount I have to get an IFA to write to them to confirm I understand everything (government rules). All I want to do is get my money out to improve my living situation whilst I continue with my cancer treatment, whilst reducing stress levels in my life. Grrrrrrr!

xylophone

There is some information about S32 here

http://www.financialadvice.net/s32_buy_out_plan/zone/1288

Presumably at some stage you had a defined benefit pension and this was transferred into a S32.

It may well have had a GMP pre and/ or post 1988.

This will have guaranteed you certain benefits at age 60 (assuming you are female).

If you wish to transfer out into a DC pension, then you may well need the advice of an IFA qualified in pension transfers.

http://www.fca.org.uk/firms/financial-services-products/investments/pension-transfers/when-transfer-required

https://www.unbiased.co.uk/


http://www.thisismoney.co.uk/money/pensions/article-3194987/Norfolk-saver-wins-battle-cash-13k-pension-without-financial-advice.html



'Pension Wise also has a directory of retirement specialist advisers which might make it easier to find an adviser willing to look at this for them for a simple fixed fee.'



https://www.pensionwise.gov.uk/


http://www.pensionsandannuities.co.uk/cash-in-a-personal-pension.htm

dunstonh

My IFA cannot help me with cashing in my Section 32 Buy Out Policy as he doesn't have the necessary licence. I never knew there was a specific licence for S32 advice.

S32 buy out bonds are classed as an occupational pension and require the adviser signing off on the advice (i.e. taking responsibility) to be a pension transfer specialist. That requires further qualifications, extra regulatory requirements and the PI insurer being notified. Unless you do enough of them, its not commercially viable for most IFAs to do it. I believe its something like 1 in 5 will do it.

Unbiased has a classification on their search engine that should indicate whether they can do pension transfers that fall under that licence. So, check unbiased, filter it to pensions and select the sub filter of pension transfer. If the adviser firms have set their filters up correctly, only firms that hold pension transfer licence should appear.

Poppy_Golightly

Thank you for that. Yes it does have a derisory amount of GMP - so I am taking it all out. The fund isn't big enough to generate the GMP so they would have to foot the bill themselves so they gave me a transfer value to basically get rid of me as I would be a financial liability to them. Well that's how I see it in my world! I need the money so I can improve my living situation whilst I battle C. I have found an IFA who has the licence and he tells me S32 are never straight forward as he has to prove to the Regulator that what I want to do is within my best interest!

Poppy_Golightly

Thanks Dunstonh. I appreciate that. I should really come here before I do any financial research at all. And it's always in layman's terms too here xxxx

xylophone

Well that's how I see it in my world! I need the money so I can improve my living situation whilst I battle C. I have found an IFA who has the licence and he tells me S32 are never straight forward as he has to prove to the Regulator that what I want to do is within my best interest!

It is just possible that your illness may make the IFA's task easier.

Poppy_Golightly

Only if it is terminal and at the moment I am doing my level best to make sure it isn't ;-) As it is Breast Cancer it is more survivable than a lot of other types of the illness (allegedly). xx