Blocking my Pension Transfer

Irritated!

Hello All,

My recent experience with an IFA was not very helpful! I have a small DB Pension fund around £37K and wanted to transfer this so that I could draw down from it which I can’t do where it is at the moment. This was going to be a stop gap top up for 3 or 4 years to cover retiring early – or rather being one of those WASPI’s !

Whilst my IFA understood my overall plan and agreed the transfer was suitable, his double checking service who underwrites the scheme said no and thus put an end to the progress. Their argument was that the pension was good value and that I had sufficient cash I could use for my requirements without touching the pension. So much for the Pensions Act eh!?

Since I am likely to get a bill for the failed service can I complain to the financial ombudsman or even the small claims court for my costs as he didn’t see a problem with the transfer?

Also does anyone know of an IFA that doesn’t have a company underwriting their advice that is full of jobsworth types that think they know better than me what I should do with my own money? Bear in mind that the pension fund value is around 5% of my assets..

Any ideas?

tacpot12

I don't think you will get far with a complaint. You have had the advice you paid for, and presumably you knew the advice might be not to move the pension.

I would ask "Have you received that advice in writing though?" If not, get it in writing and transfer your pension yourself to a scheme that will accept the transfer even if the advice you were given was not to transfer it. Normally it will be the existing scheme that wants to see the advice you have been given.

dunstonh

!!!8211; or rather being one of those WASPI!!!8217;s !

Best keep that quiet as WASPIs are not popular around here.

So much for the Pensions Act eh!?

What pensions act are you referring to? Cant be the 2015 changes as they were not to do with DB schemes.

Whilst my IFA understood my overall plan and agreed the transfer was suitable, his double checking service who underwrites the scheme said no and thus put an end to the progress.

Where an IFA refers the case to pension transfer specialist, it is the PTS that is signing off on the advice. Not the IFA that referred to them. So, whilst an unqualified IFA may think it sounds like a good idea, a qualified IFA may feel different.

Have you asked to proceed on an insistent client basis?

Since I am likely to get a bill for the failed service can I complain to the financial ombudsman or even the small claims court for my costs as he didn!!!8217;t see a problem with the transfer?

You can complain but you are unlikely to succeed. The product being sold here is "advice". You have received the advice. Just because you do not like the advice does not mean you don't pay for it.

The FOS will not rule in your favour on a fee where the service has been provided unless the fee was on a contingency basis.

Also does anyone know of an IFA that doesn!!!8217;t have a company underwriting their advice that is full of jobsworth types that think they know better than me

Almost certainly they do know better than you. They are just being more cautious than you are being. Jobsworths don't tend to do transactions that can bankrupt companies.

Bear in mind that the pension fund value is around 5% of my assets..

But how much of your income would it produce?
How much of those assets are investible or income producing assets?

If it is just 5% then why take the risk?

sandsy

You don't have any cause for complaint.

The final advice is not to transfer because you have other assets you can use. That is in keeping with the regulator's guidance that there has to be good evidence to recommend a transfer and in your case, it sounds like there's isn't.

I suspect you're misunderstanding the Pensions Act. Various acts during 2014-15 gave DC pension members the right to take benefits flexibly. DB members such as yourself, on the other hand, were required to take regulated financial advice to protect them from themselves and prevent them giving up valuable benefits unnecessarily.

xylophone

You've paid for the advice (do you have it in writing) and the advice is not to transfer. You still wish to go ahead.

This could restrict your choice of a receiving scheme.

https://www.professionaladviser.com/professional-adviser/news/3015853/martin-tilley-sipp-providers-accepting-insistent-clients-is-questionable

Brynsam

The transfer can still proceed - the trustees of your DB scheme need confirmation (direct from a suitably qualified and regulated adviser) that you have received advice, not that you have followed it. Some schemes won't accept transfers unless they adviser has recommended transferring, but there are others which will take your transfer, enabling you to achieve your objective.

TBC15

Irritated, just get your disappointing advice in writing, pay the bill and transfer to AJ Bell job done.