How to find IFA who will do pension transfer paperwork?

pandapaws

I understand that I'm legally obliged to get a financial adviser to sign paperwork to say that they have advised about transferring a final salary pension out of it's employer scheme, and made initial enquiry with a friend of a friend who's an IFA. He said that it can be very difficult to justify these transfers, and while he totally agreed that in our circumstances it makes sense to do the transfer, he probably wouldn't be able to recommend it officially on paper because of the high levels of regulation and the type of pension it is.

My question is, if I'm determined that I want to transfer this pension, what are the IFA requirements that i need? Only that I've sought advice, or that they've agreed with the transfer?

Can the fees that the IFA charges come out of the pot amount even if I manage to get a fixed fee rather than a percentage? What sort of agreement would be normal in such circumstances? I've never used an IFA before, and don't know much about how they work. They generally seem to offer a free consultation, but there aren't enough hours in the day to spend an hour with a dozen different companies (and waste their time too) just to find out how much they'll charge - I'm not sure what the normal protocol is?

dunstonh

My question is, if I'm determined that I want to transfer this pension, what are the IFA requirements that i need? Only that I've sought advice, or that they've agreed with the transfer?

The ceding scheme only requires you to have had advice. They are not required to know the outcome of that advice.

The receiving scheme can choose whether they only have positive advice to transfer or just that you have had advice. There are plenty that will accept without positive advice to transfer. Some IFAs will not transfer unless the advice is positive. So, that is another question to ask.

Can the fees that the IFA charges come out of the pot amount even if I manage to get a fixed fee rather than a percentage?

yes, as long as the IFA does the transaction through their agency.

They generally seem to offer a free consultation, but there aren't enough hours in the day to spend an hour with a dozen different companies (and waste their time too) just to find out how much they'll charge - I'm not sure what the normal protocol is?

The free consultation isnt really a consultation. It is a brief period for you to meet and discuss issues and see if there is common ground to proceed into the next stage.

You can ask the adviser firm on the phone what they charge for defined benefit pension transfers.

bikeman

The problem I have and you will too, is that 99.9% of IFAs are unwilling to put their name to the forms in the event that they don't approve the transfer.

The upshot being that even if the donor and recipient pension companies just want confirmation that you've obtained advice and have no interest in the outcome, the IFA not signing will effectively block your transfer.

Malthusian

bikeman wrote: »

The problem I have and you will too, is that 99.9% of IFAs are unwilling to put their name to the forms in the event that they don't approve the transfer.

99.9% is far too high, based on the anecdotal evidence from this forum (if it was 99.9% nobody would have managed it).

Let's say it was 99% (still an exaggeration), that would still leave hundreds of FAs across the UK who would be willing to sign off a transfer they don't approve. And the number of people who are actually going to proceed with transferring out of a final salary scheme even though it's most likely a bad idea is very small.

What you need is either an FA who is just starting out and needs the business or one who is on the verge of retirement and knows he will be on the beach when you come back and complain. The ones in the middle who are making a comfortable living from a well-established client bank and don't want to risk it are not your friends. A shame you can't search on Unbiased by age. (AFAIK.)

The FA doesn't need to be independent, by the way, only to have the relevant qualifications and permissions.

xylophone

https://www.fca.org.uk/news/news-stories/advising-pension-transfers-our-expectations

Al.

I charge a set fee, plus reasonable expenses if things drag out. I can only think of one provider who would accept a negative endorsement. I can usually tell at outset or very early on if it's viable, and will tell a client ASAP if it appears to be a "non". And we'll shake hands and walk away, nothing to pay. I say that, not to promote my services (I'm too busy at the moment anyway, alas!) but to give you an idea of what some advisers might look for, or how they work.

I look at the investing experience of the client, the funds they want, the emotional and financial headroom they have in the event of a financial crash, the plan (post transfer), the yield required, the bias towards wanting to leave a legacy (that's never going to do you any good!) and so on and so forth. If a client has no investing experience and they want to manage a complex plan themselves, that has no meat on the bone, I'll tell them at outset it's not for me.

I'm currently collaborating with a number of other advisers in producing a definitive screening template to determine transfer suitability. If the adviser wants a % by way of payment (IMHO), then walk. I've done two this year, they're quite exhausting (to me, anyway!).

xylophone

I can only think of one provider who would accept a negative endorsement

Seems a bit of a contradiction!

dunstonh

xylophone wrote: »

[/B]

Seems a bit of a contradiction!

Welcome to the world of FCA regulation.

Al.

Why would a company accept an endorsement that said "Do not proceed, do not transfer"? No names, no pack-drill.

xylophone

My point was that "endorsement" normally implies approval.

But "negative endorsement"? Good grief!

Al.

Fair one, I took it to mean recommendation or, as penalty points on a driving licence or via a flying 'green endorsement', a notation on a record. Irrelevant, I guess.