Avoiding IFA fees on DC pension transfer

mgdavid

reluctant - it would help hugely if you'd name the Pension and Scheme so that the experts on here can answer from a position of full knowledge...

Reluctantpensioner

The scheme manager is WillisTowersWatson.

sandsy

Reluctantpensioner wrote: »

The scheme manager is WillisTowersWatson.

They just do the administration of the scheme, ie. ensure the contributions are collected and invested correctly, ensure payments are made etc. on behalf of the trustees.

We need to know more about the pension scheme itself. The pension scheme itself will have a name - perhaps related to an employer you worked for? When did you start being a member of this scheme? When did you stop being an active member?

dunstonh

Look for words like GMP
Or the pension being split between pre/post years or excess.

If in doubt, ask the administrators what the safeguarded benefits are.

Reluctantpensioner

Finally have a reply from the administrators: "you have 100% defined contribution. An IFA is not mandated".
I'm assuming they include boilerplate text in their forms to cover all possible scenarios.
Thank's for the comments.

dptr

Hi,

I've got a similar problem to the OP's. I'm trying to transfer from my DB scheme, and my scheme administrator requires a statement from each transferor's IFA certifying that the IFA has given them the regulatory transfer advice, regardless of whether the IFA's recommendation is positive or negative.

But many of the IFAs I've contacted have said that they would not provide me with this statement if they were to advise me against transferring.

So I'd be grateful to know of an IFA who would provide this statement even if they were to advise not to transfer. I've contacted many and this is one of several obstacles that prevent me from signing up with one of them.


Thanks in advance for any suggestions.

xylophone

I've got a similar problem to the OP's.

No, you haven't. It seems that you are wanting to transfer a DB scheme with benefits valued at more than £30,000 to a DC arrangement.

The OP has now had it confirmed that the pension he wishes to transfer is simply a DC plan with no safeguarded benefits. He just wants to transfer to another DC scheme so that advice from an IFA is not mandated.

http://www.thepensionsregulator.gov.uk/docs/db-dc-transfers-conversions-regulatory-guidance.pdf


Trustee obligations regarding the advice

36. Requiring members to obtain appropriate independent advice
does not make trustees responsible for checking what advice was
given, what recommendation was made or to confirm whether the
member is following that recommendation.

37. The trustees are required to check that appropriate independent
advice has been received by the member before they carry out the
transfer or conversion


For this purpose, the adviser is required to
provide confirmation in writing to the member, which includes the
following information

That the advice has been provided which is specific to the type
of transaction proposed by the member.

That the adviser has the required authorisations under the
relevant legislation to provide advice on the transfer of
safeguarded benefits.

The reference number of the company or business in which the
adviser works.

The name of the member that was given the advice and the
scheme in which they hold safeguarded benefits to which the
advice applies22
22
Regulation 7 of the
Pension Schemes
Act 2015 (Transitional
Provisions and
Appropriate
Independent Advice)
Regulations 2015.

38. Trustees should retain a copy of the adviser's written confirmation.

39. When the trustees have received the confirmation that appropriate
independent advice has been received, and before the transfer is
made, they must check that the adviser has the correct permission
to carry on the regulated activity

Your problem is in getting the Adviser to provide the necessary confirmation.

Some receiving schemes will refuse to accept a transfer in unless the advice is positive.

https://www.telegraph.co.uk/pensions-retirement/financial-planning/will-no-one-help-cash-pension



https://www.fca.org.uk/news/press-releases/fca-announces-changes-advice-pension-transfers

https://www.handbook.fca.org.uk/handbook/COBS/9/5A.html