DB Transfer - important question to ask your IFA

dmelife

So OP, you have asked for advice, been provided with said advice and now you are saying to the IFA, I don’t want to pay you for your advice or follow it, but will you sign the form so I can do the transfer myself and leave you with liability for life? And you wonder why they aren’t keen??!!

Tcquins

dmelife wrote: »

So OP, you have asked for advice, been provided with said advice and now you are saying to the IFA, I don’t want to pay you for your advice or follow it, but will you sign the form so I can do the transfer myself and leave you with liability for life? And you wonder why they aren’t keen??!!

That is the crux of it. With an investor then self selecting funds it heightens the risk of the plan being used incorrectly- unsustainable rates of withdrawal, far too risky and diversified investment choice. Higher likelihood of it all ending in tears, and a claims management company getting in touch in a few years down the line.
Many feel it is easier to not face up to their own stupidity, and then pin it on the perceived ‘facilitator’.

dunstonh

Dox wrote: »

Quite so - but I wonder what the risk is of the Ombudsman deciding that a failure to sign the ceding scheme's paperwork constitutes maladministration, on the grounds that the IFA was simply confirming a fact: the individual has received advice. A sentence involving the words 'rock' and 'hard place' comes to mind...

In this case, no risk at all. The OP is refusing to pay the fee but wants the adviser to sign the forms saying they have received advice. The ombudsman is never going to rule in favour of a consumer trying to potentially defraud the advice company. Effectively, the service ends when the consumer says they are not going to pay.

Note post #7 by the OP. "Following their advice will cost £4k which I don't want to pay as they haven't given me an investment option I'm happy with."

The thread has focused more on the content of #1 by the OP. The detail in post #7 changes the position significantly.

GDB2222

Apart from anything else, the TV Analysis Report shows a critical yield based on a particular scheme that is being transferred to. If that scheme changes, the critical yield will change, and that could influence the advice to transfer or not.

Brynsam

dunstonh wrote: »

In this case, no risk at all. The OP is refusing to pay the fee but wants the adviser to sign the forms saying they have received advice. The ombudsman is never going to rule in favour of a consumer trying to potentially defraud the advice company. Effectively, the service ends when the consumer says they are not going to pay.

Note post #7 by the OP. "Following their advice will cost £4k which I don't want to pay as they haven't given me an investment option I'm happy with."

The thread has focused more on the content of #1 by the OP. The detail in post #7 changes the position significantly.

It does if the £4K relates to the whole service provided, but OP specifically says 'FOLLOWING their advice will cost £4K'. Perhaps they could elaborate on whether this is on top of the advice they have received (and have they paid for it?).

dunstonh

Brynsam wrote: »

It does if the £4K relates to the whole service provided, but OP specifically says 'FOLLOWING their advice will cost £4K'. Perhaps they could elaborate on whether this is on top of the advice they have received (and have they paid for it?).

The advice fee should be the same irrespective of the recommendation. After all, the advice is what is being paid for. Not the product or investments.

There are some firms that will segment the advice into sections. However, that comes with consequences as it introduces VAT and increases the overall charge. The OP would still be liable for all the costs upto the advice stage if that method was being used.

I have read the advice fee to be £4000. No mention of VAT or segmenting. So, I took it as an all-in fee. As you say, the OP needs to confirm this because it changes the whole context.

Dox

dunstonh wrote: »

The advice fee should be the same irrespective of the recommendation. After all, the advice is what is being paid for. Not the product or investments.

I have read the advice fee to be £4000. No mention of VAT or segmenting. So, I taken it as an all-in fee. As you say, the OP needs to confirm this because it changes the whole context.

It does indeed - and I read it that the £4K was on top of the advice fee, given the way the post was worded. Not much point continuing to speculate unless OP comes back and confirms what was actually meant/done.

LE_CQ2

The IFA has given advice but having done my own research into my company's occupational pension scheme, I believe this is a better option. When I questioned the IFA, it was clear to me that he hadn't explored all the options.
I am not asking him to do anything that would compormise him or his company, I simply need confirmation that I SOUGHT advice. I'm not asking him to say he recommended the route I am taking, in fact I don't even mind if he includes in his letter that he absolutely isn't recommending my chosen option; I simply want a statement saying I consulted. I'm not going behind his back to invest in the same thing he recommended and I'm not trying to fee dodge.


The purpose of my post was simply to warn others of this pitfall. I'm not sure how helpful it is to this discussion to start making assumptions about my motivations especially as they are ill informed.


I'm just trying to help others out with something I wished I'd have thought of asking at the outset.

dunstonh

I am not asking him to do anything that would compormise him or his company, I simply need confirmation that I SOUGHT advice.

You appear to be mistaken on what is required. Its not that you sought advice but abandoned the process after seeking it. You have to pay the adviser to get the advice and the advice process completed. This will result in a written report.

If you disagree with the advice, then some advisers will refuse to enable you to do the transaction but some will transact. That bit needs verifying at the start. But if you are not paying the IFA to give the advice, then you have not actually sought advice in the eyes of all involved.

xylophone

The IFA has given advice but having done my own research into my company's occupational pension scheme, I believe this is a better option. When I questioned the IFA, it was clear to me that he hadn't explored all the options.

https://www.fca.org.uk/news/news-stories/advising-pension-transfers-our-expectations