Old Mutual Platform

redmalc

Hi Guys

Looking to move my personal pension from Scottish Widows to the OldmMutual platform on the recommendation of my advisor,I have approx 220k in the plan.
Any comments good or bad would be helpful

Brynsam

If you need to take further soundings from complete strangers on whether to follow personalised professional advice, perhaps you should either go back to your adviser and ask him/her to explain their recommendation further; or find an adviser whose advice you trust.

dunstonh

We used to use OMW platform a lot in the past. Indeed, I still have my own pension on there. Nowadays, we use it for legacy clients only and not new business.

We are waiting to see what the new software is going to be like later this year (they are moving software supplier) and if they lower their charges. If the software is no good and they do not lower their charges then we will look to migrate people on Charge basis 3 away from it (but will probably leave charge basis 1 and 2 in place).

As it stands, it is neither the best software (some bits still require internet explorer and its still heavily paper based) and its certainly not as cheap as the other basic platforms. It also not a full wrap but a restricted fund selection. Apparently, these things are going to be addressed this year, which is why we are giving them a chance, but we will have to wait and see.

recommendation of my advisor,

Is that an IFA or an FA? OMW platform is used by intrinsic network FAs. So, if yours is an FA, they are only using what they are allowed to use. If its an IFA, then you should question them as to why they use OMW instead of others.

Its not a bad choice. It's a bit like having a favourite supermarket. Ask different people and you get different preferences. However, if your adviser is an FA you are not getting choice. It was once one of the best software wise but just got left behind but they are hoping to address it soon

wary

dunstonh wrote: »

We used to use OMW platform a lot in the past. Indeed, I still have my own pension on there. Nowadays, we use it for legacy clients only and not new business.

We are waiting to see what the new software is going to be like later this year (they are moving software supplier) and if they lower their charges. If the software is no good and they do not lower their charges then we will look to migrate people on Charge basis 3 away from it (but will probably leave charge basis 1 and 2 in place).

As it stands, it is neither the best software (some bits still require internet explorer and its still heavily paper based) and its certainly not as cheap as the other basic platforms. It also not a full wrap but a restricted fund selection. Apparently, these things are going to be addressed this year, which is why we are giving them a chance, but we will have to wait and see.

That's a bit concerning to hear as when I changed advisers a couple of years ago, they transferred my SIPP from L&G Cofunds platform to OMW (no transfer charge), and also set up a new pension for my wife on OMW.

What's the difference between Charge 1/2/3? I've no idea which one I'm on.

dunstonh

That's a bit concerning to hear as when I changed advisers a couple of years ago, they transferred my SIPP from L&G Cofunds platform to OMW (no transfer charge), and also set up a new pension for my wife on OMW.

I wouldnt be concerned. As I said, I still have my pension there. They havent gone bad. They have just left their software fall behind. I still put them above Fidelity/Cavendish and you see from plenty of posts here that people still use them.

It's more a case of them leaving it to last minute to update software. i.e. sitting on their laurels. Remember they used to be the biggest platform and still have the most super clean share classes of any platform. This is largely in part due to Old Mutual breaking up the UK company. OMW platform is about to be rebranded as Quilter Wealth Solutions.

What's the difference between Charge 1/2/3? I've no idea which one I'm on.

Charge basis 1 and 2 are effectively the same in terms of costs. Its more an admin thing to class the adviser charge as commission or fee. It only applies to pensions that were set up prior to 1st Jan 2013. Everything since then has been on CB3 basis.

CB1/2 uses bundled share classes. CB1 allows the platform to retain the platform commision and the adviser to retain the adviser commission. CB2 is the same except adviser commision is rebated and an explicit adviser charge taken instead. CB3 is unbundled share classes. CB1/2 has a £75.10 p.a. platform charge (irrespective of balance). CB3 is percentage based and tiered on value.

Until 2013, the OMW platform (or Selestia as it started out but then later was bought by Skandia and rebranged to OMW) could be one of the cheapest platforms on the market. £75.10 p.a. fee plus ishares class L trackers (~0.20%) for example.

CB3 is not expensive if you hold enough money. However, its opening tier is 0.50% (although drops to 0.35% at £25k and 0.3% at 100k). There are other basic platforms that operate at 0.2x% on the opening tier. So, there is some context when it comes to charges.

redmalc

Dunstonh

My advisor is an IFA,I also have have a S&S isa with OMW and with my Pension will have over 340k and I was advised they have negotiated very favourable charges at that level of holding

dunstonh

redmalc wrote: »

Dunstonh

My advisor is an IFA,I also have have a S&S isa with OMW and with my Pension will have over 340k and I was advised they have negotiated very favourable charges at that level of holding

This is the context needed that I mentioned.

OMW allow linking of the wrappers for charging purposes (and spouse holdings too). So, the total value of your ISA and the pension dictate the charging tier.

The bits about their paper admin and platform software still apply but you can now look ahead to later in the year when the changes happen.