Lowest cost IFA for a pension pot transfer from DB scheme

LarryNectar

I am interested in finding the lowest cost IFA for a pension pot transfer to a UK SIP Hargreaves Lansdown. Apparently this is a statuatory requirement as valuation over 100K

How would I find such a IFA

How can I minimise the cost. The client my former colleague and friend is a former investment banker and is happy to sign any indeminities limitations re advice. say he has already made a final decision.

Also ideally he really would prefer to do all online as he is been travelling around tyhe world for last 3 years and is not returning UK.

ps thanks for any advice

pps is there a better forum for these kinds of questions

Alexland

So your former colleague is insistent, absent and looking to go DIY ongoing. That all sounds very high risk and so it will be difficult to find any reputable IFA that will go near that case at any price.

I would suggest they approach IFA pension transfer specialists with a more open mind.

Alex

Aegis

There's no indemnity he could sign which would remove the burden of retrospective complaints from an IFA, because the FOS has the power to exclude any such items it deems weren't in the client's interest. Advice can't be given based on a pre-chosen outcome, so if you do find someone willing to act on that basis, they probably don't know the subject very well.

LarryNectar

well I guess will need to keep looking elsewhere thamks for the replies.

DairyQueen

There are many, many threads here that have covered DB transfers in great detail. Search for 'transfer DB pension' and take your pick.

An extra complication is your friend's (non-UK) residency.

Bottom line is that DB transfers are difficult. There is no such thing as a low cost DB transfer. This is a risky transaction for IFAs and it is priced to reflect that. Signing a waiver will not relieve an IFA of future claims so that isn't an option. Most providers will refuse a DB transfer-in without a positive recommendation from an IFA. It requires very specific circumstances to receive a positive recommendation. The chances of your friend meeting these specifics is unlikely.

No idea how the non-UK residency will impact but I suspect that it may increase the complexity and, thus, the IFA fees.

LarryNectar

and I have to say that a retired wealthy investment banker with very extensive financial interests really does not need financial advice from IFAs. I can see why law exists but seems ridiculous in this case but we are where we are. And thanks for the comments.

Alexland

LarryNectar wrote: »

and I have to say that a retired wealthy investment banker with very extensive financial interests really does not nee financial advice from IFAs. I can see why law exists but seems ridiculous in this case but we are where we are

IFAs have qualifications and experience in providing tailored personal finance advice.

This is very different to the activities of someone working in an investment banking role.

Anyway if your former colleague has done a correct assessment of their circumstances and there are clear justifiable benefits in performing the transfer then the IFA pension transfer specialist may come to the same conclusion and support the transfer.

Alex

dunstonh

How would I find such a IFA

Why would an IFA want to recommend a transfer to an expensive platform like HL? I would find it a struggle to recommend such a move personally given their costs are higher than what an IFA can use.

The client my former colleague and friend is a former investment banker and is happy to sign any indeminities limitations re advice. say he has already made a final decision.

Is he really a former investment banker? Surely he would know that you cannot sign such things to reduce liability?

If he is choosing HL, then you have to question his overall knowledge.

Also ideally he really would prefer to do all online as he is been travelling around tyhe world for last 3 years and is not returning UK.

What is his country of residence for tax purposes? (I fear this is going to be a limiter for availability).

and I have to say that a retired wealthy investment banker with very extensive financial interests really does not nee financial advice from IFAs. I can see why law exists but seems ridiculous in this case but we are where we are

Sometimes people know a lot less than they think. The inconsistent info, as mentioned above, indicates that such a scenario could exist here. I have a former investment banker on my books and his knowledge and understanding of retail investments is no better than other normal consumers.

LarryNectar

Yup it really just yax avoidance for him ... soemannuity for a poxy 3k or whatever is really 100% pointless.

And yes I hope matter can be resolved.

Not trying to insult IFAs by the way

LarryNectar

Hmm really nt trying to turn this into a IFAS vs Investment bankers stand off ....thanks for your thoughts

Paul_Herring

LarryNectar wrote: »

and I have to say that a retired wealthy investment banker with very extensive financial interests really does not need financial advice from IFAs. .

Then may I suggest if he's that experienced, then he would know the reasons why you're getting the answers you're getting at the moment regarding transferring a DB pension, and will get those answers anywhere (reputable) you ask for them.

Or he's perhaps not as experienced as he lets on, in this area, and does actually need the services of an IFA.