Can't move pension without FA advice?

firebubble

Hello

I have a small pension fund which was a scheme offered by an old employer (not a 'company pension', there are no guaranteed benefits etc).

I noticed recently that the management charge is higher than for another scheme I have with the same pension provider, which was offered through another old employer of mine.

I want to transfer the smaller fund, into the larger fund, but I have been told that I need to get advice from an FA to do so. I did something similar previously, and I contacted the FA listed as the contact, and they confirmed to the pension scheme that they'd given me advice (basically confirmation there were no guaranteed rights attaching to the scheme), and then it was transferred straight into the other pension.

This time, the 'FA' listed on the scheme are saying that they don't have any record of me or my pension on their records, and can't help.

I spoke to the Pensions Advisory Service, who told me that because this pension is under 30K, they don't believe I need to get FA advice, particularly to transfer it to another pension. They confirmed that the 'FA' listed for the scheme is not actually an FA, so it's not real 'advice'.

I went back to the scheme provider, and they are adamant that I need to get FA advice before they can move the money. I don't want to pay hundreds of pounds for a FA to tell me what I already know (I'm a solicitor).

I'm not sure what to do next. I was thinking maybe complaining to the Pensions Regulator?

Any advice would be gratefully received

xylophone

Are both these old pensions DC with no safeguarded benefits?


Is the problem that the provider will only deal through an intermediary rather than that you need advice to transfer out?

Might you be better off transferring both pensions into another scheme, perhaps a SIPP?

If you like the funds in which your pensions are invested you could probably buy them in a SIPP.


http://www.moneysavingexpert.com/savings/cheap-sipps

zagfles

As I understand it, the scheme you're transferring out of can't stop you transferring out (subject to the usual rules no guarntees/under £30k etc). However the scheme you're transferring into can insist you take advice, some even only deal through advisers/intermediaries.

So if it's the same provider they're probably saying they won't accept the transfer in, not the transfer out. You should be able to transfer it somewhere else. It might even work if you transfer to eg a SIPP provider and then transfer it back to the other scheme! Obviously watch out for charges!

dunstonh

Who are you trying to transfer it to?
If the provider is one that only transacts via intermediaries then they are within their rights to say that one is required. If you dont want to use an intermediary then transfer it to a DIY provider.