Defined benefit pension transfer

bikeman

I am looking to transfer up to 3 defined benefit pensions and have obtained a transfer values.

The 12 week clock is ticking and I am not making much progress.

I am aware that legislation requires me to obtain independent advice.

Specifically I require:

1. A list of suitably qualified IFAs who can meet the legislative requirements.

2. A list of pension companies who offer drawdown products AND will allow a transfer in without an IFAs approval.

Has anyone shortlisted suitable lists or can offer recommendations?

Can anyone tell me what the two involved pension companies are expecting in the way of supporting evidence?

And once I've obtained advice is there any reason I can't initiate the transfer myself?

Thanks

dunstonh

I am aware that legislation requires me to obtain independent advice.

Actually, the legal requirement is to obtain advice. Not independent advice. However, it is logical for that advice to be independent.

Specifically I require:

1. A list of suitably qualified IFAs who can meet the legislative requirements.

2. A list of pension companies who offer drawdown products AND will allow a transfer in without an IFAs approval.

Has anyone shortlisted suitable lists or can offer recommendations?

1 - use unbiased and select the pension transfer filter. It relies on the IFA selecting their filters correctly but that is about as good as you can get.
2 - all of them in respect of those that transact via IFAs. With direct to consumer providers, that is where some will get fussy.

Can anyone tell me what the two involved pension companies are expecting in the way of supporting evidence?

Usually a declaration by the advising firm.

And once I've obtained advice is there any reason I can't initiate the transfer myself?

No reason, although the adviser charge is vatable if there is no intention to purchase. It is non VAT if there is an intention to purchase. The IFA offerings are usually lower cost than many of the DIY offerings if you exclude the cost of advice. Some exceptions apply.

bikeman

Thanks for your response. I have tried Unbiased but noticed that ticking the 'pension transfer' box made no difference to the results and the two IFAs I rang admitted they weren't qualified, so I am looking for a better list or recommendations.

I didn't understand your answer to my second question: my experience thus far is there are few draw down product providers and even fewer who will accept a transfer in without a positive transfer recommendation. My own Sipp provider, Hargrieves Lansdown, is an example of one that will not accept my transfer without an IFAs positive approval. I need to shortlist more suitable providers.

dunstonh

my experience thus far is there are few draw down product providers and even fewer who will accept a transfer in without a positive transfer recommendation.

I suspect you have been contacting the direct to consumer providers. Not the intermediary providers.

My own Sipp provider, Hargrieves Lansdown, is an example of one that will not accept my transfer without an IFAs positive approval. I need to shortlist more suitable providers.

HL are a D2C provider. HL are more expensive than the options an IFA has available. So, maybe letting the IFA do it is the better option.

I have tried Unbiased but noticed that ticking the 'pension transfer' box made no difference to the results and the two IFAs I rang admitted they weren't qualified

I would email unbiased and tell them that both of those IFAs had the pension transfer box ticked but didnt actually do pension transfers. It wont help you but unbiased can get it removed which will help others.

Approx 1 in 10 IFAs hold the permissions. Once you have found several IFAs, you can check their FCA permissions on the FCA register. Look up the IFA firm. Then select permissions to expand it. There will be a box called "Advising on Pension Transfers and Pension Opt Outs". That box used to only appear on firms with pension transfer permissions. So, if its not present, the firm cannot deal with you. However, last year the FCA introduced a new permission in respect of guaranteed annuity rates and decided, in their wisdom, to classify it under that section. IFAs were recommended to get that permission added (as they cannot deal with people with GARs without it other than utilise the GAR). So, now most IFAs will have that box but at the bottom, it will say "Limited pension transfer activity for the provisio... guaranteed annuity rates". If have that limitation, then they cannot do pension transfers. If there is no limitation and the box is there, then they can do pension transfers.

xylophone

http://www.pruadviser.co.uk/content/knowledge/technical-centre/pension_transfer_conversion/?gsasro=1&gsaq=pension%20transfer%20specialist

information about qualifications required.

https://forums.moneysavingexpert.com/discussion/5594338

Have you tried AJ Bell?

RADDERS

I had the same problem when trying to find an IFA with the required permissions as even though unbiased listed them they did not.
In the end I just rang round local companies and specifically asked if they had the permissions and then met up with a couple to discuss what my options were.
Found one locally that I am happy with and have had initial meetings and am now going ahead, subject to a revised CETV as the original one took too long to be forwarded from the trustees, also didn't want to rush any decision that I made.

bikeman

I've found a few with the required permissions but none that would be prepared to put their name to the paperwork in the event that they don't recommend the transfer.

All the form asks is that they confirm that they are qualified to advise and have done so, it doesn't ask them to state the outcome or in anyway put their balls on the line but still they refuse.

If they are that concerned about repercussions a cycnic would argue that they are biased towards not approving.

More to the point though I am paying for advice and I should be able to consider and use that advice as I see fit without them deliberately obstructing my decision.

I've complained to my MP about this.

xylophone

https://www.moneymarketing.co.uk/issues/10-november-2016/db-transfer-overload-market-working/

https://www.finalsalarytransfer.com/

may be worth a look.

bikeman

Thanks for the info. I am worried that whilst I might eventually get an IFA to 'sign off', because of their reticence to recommend transfer I am not really getting impartial advice and that makes an informed decision difficult.

dunstonh

I've found a few with the required permissions but none that would be prepared to put their name to the paperwork in the event that they don't recommend the transfer.

There will be some that will but equally some that wont as you have found out.

If they are that concerned about repercussions a cycnic would argue that they are biased towards not approving.

If the research shows a clear transfer is best then its not a problem. However, the FOS has a tendency to disregard disclaimers saying someone is happy to go against the advice. They say that someone who doesnt know what they are doing is not in a position to sign away that they want to do it. Also, the FCA have said in the past that IFAs should not transact something that they know to be wrong. Although the FCA have also said that an IFA following the insistent client process should also be ok. It is that sort of conflict of information which leads to advisers protecting their backsides.

I've complained to my MP about this.

Won't get you anywhere. MPs have complained about various things the FCA (or FSA was it was) has done or not done over the years and it has stuck its fingers up at them. Also, you cannot force a firm to transact something they are not comfortable to transact.

because of their reticence to recommend transfer I am not really getting impartial advice and that makes an informed decision difficult.

An IFA telling someone to not transfer has as a liability for suitability of advice too. The advice has to be suitable whatever the recommendation is. So, telling you not to transfer when you should could still lead to a fine and/or redress.

bigadaj

bikeman wrote: »

Thanks for the info. I am worried that whilst I might eventually get an IFA to 'sign off', because of their reticence to recommend transfer I am not really getting impartial advice and that makes an informed decision difficult.

What are the cetv values and the projected benefits, out of interest and also to see how easy a transfer would be to justify based on the hurdle rate.