Cost of moving DB pension fund

AnotherJoe

kwame41 wrote: »

Just out of interest would there not be a written explanation from an adviser detailing what they regard as best advice to the customer given their in depth knowledge and experience on the subject?
If the customer then decides to make the wrong choice isnt the adviser covered because he or she has a formal record of advice given along with suggested options and potential risks to the customer based on the choice they make?

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The trouble is, even when that's happened the finding has been (according to reports posted here) "well the customer isn't a financial,expert and shouldn't be expected to understand the issues" and so even if they go against advice the advisor gets found culpable !
It's not surprising that given this only one in tend IFAs gets qualified to do this.

dunstonh

I agree consumers should take responsibilty for bad choices they make. Equally, financial advisers should expect to be held accountable for providing bad advice.

Consumers rarely take responsibility. They tend to lie in complaints giving different info to what they told the adviser. They will play down their knowledge and pretend they are stupid and will accuse the advisers of saying or doing things they didn't. The FOS is pretty liberal and cannot believe for one second that a consumer would be trying it on. Even with a claims company briefing the person on what to say.

Obviously, not everyone is like that but when it comes to money and compensation chasing, it is funny how things change.

You should not underestimate the impact try-it-on/fraudulent complaints have on genuine advisers from a mental health point of view either.

Tammer

We are currently enjoying one of the longest ever bull markets. It will be interesting to see how complaint numbers move when the stock market tanks and someone's £500k DB Transfer Value has become £300k and the client uses hindsight to wonder if they made the right decision all along.

Aegis

Tammer wrote: »

We are currently enjoying one of the longest ever bull markets. It will be interesting to see how complaint numbers move when the stock market tanks and someone's £500k DB Transfer Value has become £300k and the client uses hindsight to wonder if they made the right decision all along.

Exactly. This is one reason why all of my DB transfer reports look at what happens if the client's pension incurs a permanent 25% loss of value, i.e. they don't benefit from any sort of recovery after the market falls, just the standard assumed rate of return (1% above inflation for the overly pessimistic scenarios). If it looks like they would be worse off under such a scenario, I highlight it and then agonise over whether to actually recommend the transfer or not, which takes into account all of the client's goals, assets, liabilities, etc.

kwame41

Lots of good information coming out of this thread.


Starting to understand why the fees would be so high.


Not sure its going to make the OP feel any better though. :-)

[Deleted User]

Don't fret, i'm sure robo IFA's are just round the corner. £20 a go.

dunstonh

DeletedUser wrote: »

Don't fret, i'm sure robo IFA's are just round the corner. £20 a go.

They can't get their basic stuff cost effective yet. Let alone the complicated stuff. And there is no chance you will see DB transfers handled on a "robo-advice" flowchart.

What makes you think robo-advice is cheap? Most examples seem to be more expensive than full advice unless the amount being invested is very low.

mgdavid

DeletedUser wrote: »

£7500 to 'advise' somone what to do with their money?

LOL what a joke! :rotfl:

It's not their money.

It's money given to the Trustees to invest in the central fund so it can afford to provide a salary-related pension for the rest of the employee's life after retirement. Some comes from the employee, some (usually more) comes from the employer, some comes from the taxman.
It's entirely possible the employee has contributed nothing - 20 years ago non-contributory DB pension schemes were quite common.

number9

mgdavid. Part employee/part employer contributory pension = the agreed (and then often changed at the employer's discretion) part of the renumeration package taken up with the employment.

number9

Alibert wrote: »

A shrewd guess .. this IFA doesn't really want number9 as a client .
From his perspective he is being asked to provide advice , which the recipient doesn't think he needs, to someone who is a family member of his ex partner. Any advice that contradicts the view of the ex partner will be met with suspicion . The recipient of the advice seems likely to be an insistent client.

I suspect the £7.5 k is intended to make number9 look for advice elsewhere

Wow. There's a lot of presumptions here! 1) I want proper, diligent, educated financial advice on this matter. This is a significant sum of money to me and it is important on how this is handled. 2) The IFA could and should do his own research and decision making on the advice which is relevant. 3) The IFA has looked at the pre-interview notes/projections based on my preliminary advice from the family member and basically agreed it looked sound. 4) Insistent client? If you mean I'm insisting on reviewing my transfer out of the DB scheme the, yes. If you mean that I am insistent on a particular course of advice or investment then, absolutely no. Not a shrewd guess really.