Pension charges and MIFID II

Tigra_

Just doing a bit of spring cleaning on my pensions. Has anyone written to their provider asking for details of fee and charges quoting MIFID II as a reason for full disclosure?

I'm interested in what people asked for and what they received back, e.g. do you get £s and pence answers or do they just stick with % or do they deny they have to reply at all.

Also which providers? I'm interested in Hargreaves Lansdown and Scottish Widows specifically, but a wider view would be useful for everyone.

I appreciate that pension providers are struggling as there isn't (I believe) a prescribed format to reply.

Any anecdotal replies gratefully received.

AnotherJoe

I don't understand your question or the need to raise MIFIIDII.

Are you suggesting that the charges on their websites, or the itemised charges in your annual report and itemised charges in the account statements are lies and there are additional charges not shown?

dunstonh

Has anyone written to their provider asking for details of fee and charges quoting MIFID II as a reason for full disclosure?

MiFID II doesnt apply to pensions. Although the platforms are putting them in place.

The only things that is new with MIFIDII is the highly flawed transaction charges calculation. And you can get that from your fund factsheet/KIID.

sandsy

Pensions aren't caught by MiFID.

However, every regulated pension provider should be able to provide you with some sort of answer as you are entitled to have information about your contract. The regulator has indicated it expects this sort of information to be provided annually to customers but many are still playing catch up.

I suspect in most cases, you would get a % answer. For many pensions, the way the charges are deducted within the fund and already taken into account within the unit price makes it extremely difficult for them to provide a figure in £ and p.

dunstonh

So, will you now be asking the pension providers knowing that MiFIDII doesnt apply?

ceivegz

Does MIFID 2 really not apply to pensions? Even Self-invested SIPPS? Where does it say this? If they apply to regular brokerage accounts why wouldn't they apply to SIPPS? They're basically the same financial product once you put aside the way they're treated from a tax perspective.

dunstonh

Does MIFID 2 really not apply to pensions?

No it doesnt. It doesnt apply to investment bonds or life funds either.

Even Self-invested SIPPS?

SIPPs are pensions.

Where does it say this?

In pretty much most MiFIDII guidance based on the published directive.

If they apply to regular brokerage accounts why wouldn't they apply to SIPPS?

Because of the legal structure of pensions.

The FCA is considering bringing pensions in line, just as it has with investment bonds/life funds under the Insurance Directive.

It's not as if MiFIDII is a helpful piece of EU legislation though. The bulk of it is a costly mess with very little consumer benefit. Some of it is farcical. Such as including some profit/loss as a charge rather than return on the investment. And going to quarterly statements is just going to create bad decisions by inexperienced investors.