Found IFA to Do Transfer - Does This Sound Reasonable

GSP

Hi all,
Thanks to those who have responded to my posts recently and sorry if I have bombarded the board somewhat. I am a complete novice trying to find his way through the terminology etc. Do they do an idiot's guide!

I have decided to go for the transfer out (£780k from the last quote) and to have £195k tax free and flexi access drawdown and from a link provided for unbiased.co.uk have spoken to one company so far.
Not sure what the set up is but he phoned back, said he found a company that would do the transfer and has sent through forms to complete. I have not agreed anything as I want to hear from at least two other advisers.

The quote from this first company is:
£500 + vat for a report (Upfront before pension starts).
£14,500 for the transfer (taken from the fund).
0.5% thereafter for reviewing the fund.

Does this seem reasonable?

I did say about getting the transfer approved and that those holding my pension currently might object if its not approved, so needs to be looked into more. Seems a waste of £500 if they won't approve.
I said were they FCA approved and he said yes and they were there on the system. Had a quick look through the 3 forms they had sent through. One bit I'm a bit sceptical under a heading of keyfacts is where they have ticked "Restricted Advice", whereas above this is a box for Independent. Is this okay.

Again appreciate any comments or observations on anything I have written so far.
Thank you

sandsy

£15000 for a pension transfer? That's more than some people earn in a year!

Restricted means they are not independent. They can only offer you a defined contribution pension from a restricted range of providers. There's nothing to prevent you from asking about the restriction and what providers they work with.

dunstonh

The quote from this first company is:
£500 + vat for a report (Upfront before pension starts).
£14,500 for the transfer (taken from the fund).
0.5% thereafter for reviewing the fund.

Does this seem reasonable?

Not on your nelly.

There is no need for VAT when the intention is to buy a product. So, you are being incorrectly charged VAT. Although if that was the only stage you were buying, then VAT would be chargeable. If you are asking the adviser to split the transaction then VAT would be charged.

£14,500 is disgraceful. Firms are encouraged by the FCA to have decency caps. This firm doesnt appear to have such a thing.

0.5% p.a. is fine. Its the only bit that is.

One bit I'm a bit sceptical under a heading of keyfacts is where they have ticked "Restricted Advice", whereas above this is a box for Independent. Is this okay.

No its not OK. It means they are not an IFA. Your thread title says "Found IFA to Do Transfer - Does This Sound Reasonable". You havent found an IFA. You have found a restricted adviser (or FA). The key facts document should state what their restrictions are. If you wanted an IFA (and you wouldnt want to pay £14,500 for an IFA either) then that box needs to be ticked as independent. That is what the I in IFA stands for.

Walk away. You could also check their entry on unbiased.co.uk as restricted advisers are not allowed on there. You can email unbiased at contact@unbiased.co.uk and tell them that the firm are not independent but restricted (give them a copy of the key facts document if you have it in pdf form).

xylophone

You do appreciate that you need advice from an Independent Financial Adviser with Pension Transfers Permission?

GSP

Thanks dunstonh and sandsy.
The email from the company I spoke to is an IFA apparentely. He attached the forms and said the company who would deal with this are called "Select a Pension", if anyone has had any dealings with these. He said they have full responsibility and ownership of advice.
Seems the biggest challenge maybe to find an IFA who will do the transfer, and reasonably. Found this one above on unbiased.co.uk and have requested contact from another two this afternoon, but waiting to hear from them.
Is there another way or channel I might find what I'm looking for.
Thank you

Edit: Just saw your post while constructing mine Xylophone. Yes was surprised to see restricted so was just checking. Any suggestions where to find one, or are they only under the unbiased.co.uk

dunstonh

The email from the company I spoke to is an IFA apparentely. He attached the forms and said the company who would deal with this are called "Select a Pension", if anyone has had any dealings with these. He said they have full responsibility and ownership of advice.

So, whilst you contacted an IFA, they said they cannot do it. However, they know a tied agent/restricted FA that can do it. So, the IFA is referring you to them. There will usually be some share arrangement on the fee agreed. Maybe that is why it is so high.

keep trying as there is no need to pay anything like that and especially not for a tied rep/panel adviser.

GSP

Thanks dunstonh.
Any suggestions where best to find someone suitable who would do?
Thank you

xylophone

See qualifications required here under Pensions Transfer Specialists

http://www.pruadviser.co.uk/content/knowledge/technical-centre/pension_transfer_conversion/

http://citywire.co.uk/new-model-adviser/news/fca-concerned-over-ifas-db-transfer-processes/a986828

The FCA also warned advisers that only firms with pension transfer permissions can advise on transfers.

‘It is not acceptable for a firm without the permission to outsource the transfer analysis to a pension transfer specialist or to a firm with the permission, and claim to be advising on the pension transfer,’ the FCA said.



https://www.finalsalarytransfer.com/Uploads/1435150910Tideway-Guide-to-Final-Salary-Pension-Transfers.pdf may be worth a look.

https://www.intelligentpensions.com/pension-advice-services/pension-transfers/?gclid=CP-0x8Hw2dICFYUp0wodxQMHrw

Or you might try https://www.unbiased.co.uk/enquiry/find-suitable-adviser specifying the qualifications required?

GSP

Thanks Xylophone. Will look through all this material.

GSP

Xylophone. Very useful links thank you.
Was drawn to the Tideway link, the drawdown calculator in there is very good and easy to play around with.
Forgive me as this is probably a stupid question. My administratot Towers Watson who look after my pension currently say I need to contact an IFA. Are Tideway qualified to do the whole process as I can't see a mention of them being Independent Financial Advisers?
Thank you

xylophone

https://www.finalsalarytransfer.com/Uploads/1435150759Tideway-Why-Use-Tideways-Final-Salary-Transfer-Advice.pdf