Form of the advice received from IFA on transfer of DB pension

EarlG

I wish to transfer a DB pension into a separate SIPP. The CETV of the DB pension is over £30k, so I am aware that I need advice from a suitably qualified IFA. I am aware of the risks of moving the DB pension but as it does not make a material contribution to my needs in retirement I would (among other reasons) prefer to have control over the money myself and be in a position to pass the money on to my children when I shuffle off this mortal coil.

The Trustees of the DB Pension require a statement in writing from a qualified IFA that advice has been provided. This statement has to contain the information set out in the ‘Pension Schemes (Appropriate Independent Advice) Regulations 2015’. Having spoken to someone that the Trustees they have essentially told me that the advice should identify the information that is set out in in the Regulations at para 37 (ie. the transaction to which the advice relates (ie the pension transfer), the Company providing the advice, the Advisor has the necessary qualifications and who the advice was given to (ie me)).

I was also told by the Trustees that the IFA does not have to say whether the advice recommends for or against a transfer; just that advice has been given. The Trustees need to keep a copy of the IFA’s ‘written confirmation’.

I have spoken to a few IFA’s and of those, the small number who are willing to help say they will provide me with written advice in a report recommending whether I should move the DB pension or not.

Can anyone tell me whether this constitutes the ‘written confirmation’ the Trustees are looking for or does the IFA have to sign something in blood ! What does this ‘written confirmation’ typically look like; does it follow a recognised form like a 'certificate' or something?

Any help would be greatly appreciated. Thanks. :T

dunstonh

Can anyone tell me whether this constitutes the ‘written confirmation’ the Trustees are looking for or does the IFA have to sign something in blood !

They are looking for regulated advice.

I have spoken to a few IFA’s and of those, the small number who are willing to help say they will provide me with written advice in a report recommending whether I should move the DB pension or not.

Advice follows analysis and research and a written detailed report is issued.

What does this ‘written confirmation’ typically look like; does it follow a recognised form like a 'certificate' or something?

Suitability report is the name. Probably along the lines of 25-40 pages on a DB transfer.

soulsaver

The advice itself isn't the written confirmation.

Your current scheme will provide a transfer pack, with a pro forma 'IFA Declaration' including your name, scheme number, value, time limit etc

It will ask for IFA name, company address, FCA registration number, telephone number etc. and will include the declaration for them to sign that s/he's given you advice on the transfer.

You (or your IFA)'ll need a transfer pack from your receiving scheme, too.

xylophone

Some SIPP providers will not accept a DB transfer without a positive recommendation from a Pension Transfer Specialist.

http://www.telegraph.co.uk/pensions-retirement/financial-planning/i-was-forced-to-waste-1k-on-advice-when-all-i-wanted-was-to-move1/

You have checked with your provider?

EarlG

Xylophone. I currently have a SIPP with A J Bell and am aware that they are one of the few providers that will accept incoming transfers whether the advice is +ve or -ve. Although I like the HL 'platform', I spoke to them and they confirmed they only accept incoming transfers with an IFA's +ve advice.

Thanks for the article; this was helpful and food for thought. Unlike Ms Hammond, I haven't forked out any money yet.

soulsaver

http://www.telegraph.co.uk/pensions-retirement/financial-planning/i-was-forced-to-waste-1k-on-advice-when-all-i-wanted-was-to-move1/

If the 'sophisticated investor' (her words according to the piece in the link) had transferred to AJ Bell (accept transfers even with negative advice) she could subsequently transfer it on to her scheme of choice, subject to any AJB withdrawal limitations/fee.

And she wouldn't have 'wasted £1000 on advice'.

BananaRepublic

soulsaver wrote: »

If the 'sophisticated investor' (her words according to the piece) had transferred to AJ Bell (accept transfers even with negative advice) she could subsequently transfer it on to her scheme of choice, subject to any AJB withdrawal limitations/fee.

And she wouldn't have 'wasted £1000 on advice'.

Quote: "The Trustees of the DB Pension require a statement in writing from a qualified IFA that advice has been provided. "

In general specialist advice in such a circumstance would be prudent.

soulsaver

soulsaver wrote: »

If the 'sophisticated investor' (her words according to the piece) had transferred to AJ Bell (accept transfers even with negative advice) she could subsequently transfer it on to her scheme of choice, subject to any AJB withdrawal limitations/fee.

And she wouldn't have 'wasted £1000 on advice'.

BananaRepublic wrote: »

Quote: "The Trustees of the DB Pension require a statement in writing from a qualified IFA that advice has been provided. "

In general specialist advice in such a circumstance would be prudent.

http://www.telegraph.co.uk/pensions-retirement/financial-planning/i-was-forced-to-waste-1k-on-advice-when-all-i-wanted-was-to-move1/


Sorry, I should have put the link in which I've now done; I'm referring to the Telegraph piece linked in Xylophone's post above with a suggestion that the 'victim' could have used... and not 'wasted £1000..'.

dunstonh

And in that article, the woman comes across not as sophisticated an investor as she says she is. Her reasoning for wanting the money is that she does want to wait until scheme age to access the money. However, she has other money available which could be used now and she is still going to need income later. If that was the only reason she was doing it, then it would be a potentially bad reason (subject to cashflow planning showing otherwise).