G60 & af3

nocash

Good morning,

As part of my research into choosing an IFA
https://forums.moneysavingexpert.com/discussion/5623078
I have learned about these two qualifications that appear to be required to effect a Pension Transfer from a final salary/DBS type scheme to a money purchase.

I am curious to learn why, for example, a well established IFA with 7 years in business and no other business income streams to rely on (Insurance etc) would not hold these bearing in mind the potential extra income and opportunities it could generate?

dunstonh

I have learned about these two qualifications that appear to be required to effect a Pension Transfer from a final salary/DBS type scheme to a money purchase.

The firm doing the transfer advice has to hold pension transfer specialist permissions. However, the adviser themselves does not as long as someone in the firm does hold the qualification and they are the ones that check and sign off on it.

I am curious to learn why, for example, a well established IFA with 7 years in business and no other business income streams to rely on (Insurance etc) would not hold these bearing in mind the potential extra income and opportunities it could generate?

Quite a few reasons actually.

1 - historically, only around 1 in 10 DB schemes are considered suitable for transferring.
2 - The FCA treat them as mis-sold unless proven otherwise
3 - PI insurance and compliance costs are higher if you do these.
4 - The FOS tend to uphold most complaints on DB transfers.

The FCA have said in the last week that they are requesting more files form firms on their DB transfers. This is a hot potato.

So, I can change your question to why would an IFA want to pay more and suffer greater liability and regulatory risks in a very high risk area?

Most established IFA firms have plenty of income stream without having to enter high risk business areas. Yes, we have a small window where DB transfers are looking more favourable than at any other time but that is 2 years out of 40 odd. Some firms will see this as an income opportunity. Some will be quite happy sticking to what is safe for their business.

nocash

Thanks DH,

Reading between the lines (or trying to) might it be better to instruct a firm that can effect a Pension Transfer as they are more likely to recommend the transfer if I let them know that is my preference? Then if things don't work out they would be easier to pursue through the FOS as oppose to using an IFA who uses a third party?