Defined Benefit Transfer Costs

freddymoney

He didn't insist, he just said if there wasn't any ongoing support in the form of management of the fund once transferred he wasn't interested in my business.

Oldskool90

freddymoney wrote: »

He didn't insist, he just said if there wasn't any ongoing support in the form of management of the fund once transferred he wasn't interested in my business.

I've contacted 12 IFA's so far

5 insist on ongoing basis. ie. I give them all my business
1 declined the business based upon my work scope, which I suspect meant that was because I did not want an ongoing relationship
1 is busy the next two weeks
2 haven't replied to a basic inquiry. Good way to run a business.
2 farm the work out to a third party - ongoing discussion
1 has said they are interested for a flat rate. Waiting on some clarifications.

The FCA need to get a grip and realise the situation they have created here.

freddymoney

Yes, I agree I don't think the FCA has fully thought this through and they are now playing catch up. I can see this being another PPI and I am seriously considering leaving my DB scheme in place.

drphila

I have just completed a transfer using First Equitable. I found them very professional.

BUT I should emphasise that they only took on the work once they were very satisfied that both parties had a very clear understanding of the likely outcomes, which were, in my particular case, quite obvious.

It may be that you are in a similar situation though I notice that at one point you mention someone doing the transfer at a fair price so that you can then decide what to do with it. But elsewhere you seem to be saying it is definitely going into fixed deposit accounts.

Also, whether or not you can find a cheap adviser, should not, IMHO, be the basis for whether or not to transfer.

I am PMing you another name as well.

sandsy

freddymoney wrote: »

He didn't insist, he just said if there wasn't any ongoing support in the form of management of the fund once transferred he wasn't interested in my business.

So what would he do if you accepted his requirements on management of the fund but then turned it off once you’d transferred? I’m not saying ask him, because he’d guess your motive, but do check whether his terms of business indicate any penalty for doing that? (They shouldn’t as it’s not allowed!)

He’s a bit silly for offering relatively cheap advice with a condition that can’t be enforced.

freddymoney

One of the other IFA's I spoke to said the management fee was non-contractual, I suppose on that basis its worth trying it to establish the benefits. I would need to check on the last one I spoke with.

freddymoney

BTW I don't think £2,500.00 is cheap, but it is very gratifying two know that out of two randomly picked IFA's they both had a reasonable and fair charging model.

The other IFA's I have spoken to were all directed to me by my ex-colleagues who have cashed in their DB schemes. The cynical side of me thinks that they suspect I am a captive audience based on a recommendation and I am unlikely to shop around so they can inflate their fees.

Oldskool90

freddymoney wrote: »

BTW I don't think £2,500.00 is cheap, but it is very gratifying two know that out of two randomly picked IFA's they both had a reasonable and fair charging model.

The other IFA's I have spoken to were all directed to me by my ex-colleagues who have cashed in their DB schemes. The cynical side of me thinks that they suspect I am a captive audience based on a recommendation and I am unlikely to shop around so they can inflate their fees.

The cheapest I have found so far is a £4K flat fee. However when I asked them to clarify if in the event that they did their analysis, and their recommendation was to not proceed with the transfer, but that I still intended to proceed (insistent client basis), are they willing to still sign the form that simply confirms that I have sought advice, the answer was no. This is a very pertinent question to ask.

They cite "duty of care" to clients. A duty of care might have been to highlight this fact earlier without me having to ask, as it's a pretty significant risk for a client to take. A £4K gamble in fact, and one I am not willing to take at this time.

One just got back to me, and their first and only question..."how much is in your pot" . They've also just confirmed they will not sign off on insistent client basis.

So far I am unable to find an IFA who is prepared to assist. They all appear to have decided to take advantage of the situation created by the FCA and interpret the rules to their advantage, which unfortunately they are free to do. Sadly those wishing to make a transfer are not simply free to do this.

hyubh

Oldskool90 wrote: »

So far I am unable to find an IFA who is prepared to assist. They all appear to have decided to take advantage of the situation created by the FCA and interpret the rules to their advantage, which unfortunately they are free to do.

How's it to their advantage to feel obliged to turn away paying customers...?

freddymoney

There are plenty around who will do a flat fee of £2,400.00 - £2,500.00 and one I spoke with said the ongoing management fee of 0.6% in non contractual. I think that is a reasonable offer and one that I may consider.
I do need advice and guidance on the drawdown investment so at 0.6% that is noncontractual I can see what the outocm is for at least a year.
J