Different Letters of Authority

GREYONE

Over the next few weeks, I plan to meet with an IFA to investigate pension drawdown. I know there are several types of letter of authority they use including one I think referred to as information only and another one where the policies are transferred to the advisor's agency.

I think for an initial meeting only the "Information Only" letters are necessary but is it common of others to go straight for the "Agency" letters to save time and paperwork. I am assuming the latter gives them greater authority. Can anyone explain what these two types of authority are and if there are any others that are common to use, please?

dunstonh

I think for an initial meeting only the "Information Only" letters are necessary but is it common of others to go straight for the "Agency" letters to save time and paperwork

I always go with the letter of authority for providers that integrate with IFA software. The information only method only with the providers that dont integrate with IFA systems. Either way, I use the same template.

Some firms use the information only method to avoid tipping off the existing adviser firm. Ironically, a lot of the pension scams use that method as they dont want the existing adviser firm finding out and putting a stop to it before the transfer has taken place.

Don't get hooked up on the differences. Let the adviser decide. It really makes no difference to you.

GREYONE

Thanks for the feedback and reassurance.