Pension cash Transfer dispute

Linic

I want to accept My old employers offer and transfer pension money to my sipps. Old employer said he will cover costs of IFA if I use the IFA he has selected. However after telephone interview with IFA and then giving over my financial details. IFA wants me to invest in his funds only.
I refused and complained to old company. Now IFA no longer wants to deal with me and old company supports his stance. I think it is blackmail so now I want old company to pay for costs of proper IFA advice for me.
Where do I stand legally?

crv1963

Linic wrote: »

I refused and complained to old company. Now IFA no longer wants to deal with me and old company supports his stance. I think it is blackmail so now I want old company to pay for costs of proper IFA advice for me.
Where do I stand legally?

I'm not sure but can you make an appointment to see a solicitor? In many areas they offer a free 30 minute appointment for initial advice- take any correspondence on the matter and any notes you've made with you to help get the best informed advice. Then you can decide your course of action. Alternatively to could ask an advisor at pension wise or citizens advice bureau?

AnotherJoe

You could invest in IFAs recommended funds and then immediately sell those and buy the ones you want.

Malthusian

Linic wrote: »

Where do I stand legally?

Same place anyone stands if they look a gift horse in the mouth and declare they want a less smelly gift horse. With no leg to stand on and no horse.

The idea that this is blackmail is nonsense. The old employer said if you used their IFA they'd pay for it. You don't want to use their IFA, so they're not going to pay for it. There is nothing to stop you paying for an IFA of your choice out of your own pocket.

There is also nothing to stop you using the paid-for IFA to transfer, then you terminate your servicing agreement with the IFA and switch into whatever funds you want. Not saying it's a good idea, just illustrating why it makes no sense to turn down the free gift.

badmemory

Have you checked that the IFA is actually still an Independebt FA. If he is, then what the others say. If he isn't then you should immediately tell the old employer.

dunstonh

I refused and complained to old company. Now IFA no longer wants to deal with me and old company supports his stance. I think it is blackmail so now I want old company to pay for costs of proper IFA advice for me.

You have no leg to stand on. If the employer is paying for the advice they get to pick the adviser. They are not stopping you using your own adviser. They are just not going to pay for it.

As others have said, just use that adviser for the transfer and then once its out, you can transfer again to your own choice.

IFA wants me to invest in his funds only.

The I in iFA stands for independent. If they are retailing their own funds then they are not likely to be independent. An IFA should be picking the provider and investment funds from the whole of market place (that means providers that make their products/funds available to the marketplace).