Why do I have to use a Financial Advisor?

AnotherJoe

gradyj12345 wrote: »

Where do I find a list of Pension providers that I can transfer to with no IFA and/or no fees?

I think all the major ones will. Some will also pay cashback and pay transfer fees from the donor pension. No idea if there's a list

Ergates

gradyj12345 wrote: »

Thanks. I knew that it was a "business decision", but I still don't know why, unless it's to make money?

Not so much to make money, as to avoid spending it.

Over the years *far* too many people have lost some/most/all of their pension pot to scammers and bad investments. To prevent this happening, the government put various pieces of legislation into place to protect people from themselves.

You might insist that you know what you're doing, but then so did many of the people who got scammed. How can the regulators tell the difference between someone like you who *actually* knows what they're doing and someone who just *thinks* they do? Short answer: They can't in any practical way. So the regulations apply to everyone.

As dunstonh said - some companies don't think it's worth the cost dealing with the regulations themselves so they'll only do business via a financial adviser.

xylophone

You state that the value of the pension is greater than £30,000.

Can you confirm that there are no "safeguarded benefits"?

See

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

If not, you need to find a provider offering drawdown and ask that provider to organise a transfer.

Examples

https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions

GunJack

First things first, check your existing product - if there's a Guaranteed Annuity Rate or similar benefit attached to the product and it's over £30k you will HAVE to take advice on it. Start at the right end, not the far end

zagfles

AnotherJoe wrote: »

I think all the major ones will. Some will also pay cashback and pay transfer fees from the donor pension. No idea if there's a list

Snowman's spreadsheet has a list of SIPP providers, which you can also use to compare charges: https://forums.moneysavingexpert.com/discussion/5583030/coolly-comparing-investment-platform-charges-snowmans-spreadsheet

gradyj12345

Ergates wrote: »

Not so much to make money, as to avoid spending it.

Over the years *far* too many people have lost some/most/all of their pension pot to scammers and bad investments. To prevent this happening, the government put various pieces of legislation into place to protect people from themselves.

You might insist that you know what you're doing, but then so did many of the people who got scammed. How can the regulators tell the difference between someone like you who *actually* knows what they're doing and someone who just *thinks* they do? Short answer: They can't in any practical way. So the regulations apply to everyone.

As dunstonh said - some companies don't think it's worth the cost dealing with the regulations themselves so they'll only do business via a financial adviser.

Thanks, but this isn't about being scammed. I am 'savvy' enough to know that I'm not going to move by pension to someone I've never heard of who is offering me 50% growth p.a. I'd rather leave the residue of my pension with Prudential, but they won't let me without going via a Financial Advisor. In many ways, this 'regulation' makes it more likely that someone might be scammed, rather than to encourage me to leave it with the original provider.

Ergates

gradyj12345 wrote: »

Thanks, but this isn't about being scammed. I am 'savvy' enough to know that I'm not going to move by pension to someone I've never heard of who is offering me 50% growth p.a. I'd rather leave the residue of my pension with Prudential, but they won't let me without going via a Financial Advisor. In many ways, this 'regulation' makes it more likely that someone might be scammed, rather than to encourage me to leave it with the original provider.

That's my point though - you might be savvy enough, but many aren't. The legislation has to be put in place to protect those who aren't - even if it means those that are have to go through unnecessary (for them) cost/hassle.

See for example, the additional hoops it is sometimes now necessary to jump through when doing bank transfers.

Pension_Geek

gradyj12345 wrote: »

Thanks, but this isn't about being scammed. I am 'savvy' enough to know that I'm not going to move by pension to someone I've never heard of who is offering me 50% growth p.a. I'd rather leave the residue of my pension with Prudential, but they won't let me without going via a Financial Advisor. In many ways, this 'regulation' makes it more likely that someone might be scammed, rather than to encourage me to leave it with the original provider.

There are two strands though. One is that Prudential can choose who they decide to do business with, and have chosen that its only those that have taken advice.

The other is that you may well have benefits with Prudential that have some form of guarantee attached, and losing these to take flexi access drawdown is often not in the best interests of the person.

If the latter applies, as has been said above, advice is mandatory. IF you don't know if you have safeguarded benefits, you need to find out. And if you don't know, then perhaps an IFA would be a good idea.

dunstonh

I am 'savvy' enough to know that I'm not going to move by pension to someone I've never heard of who is offering me 50% growth p.a.

You say you are savvy enough but then say you want to leave it with Pru. If you were savvy you would not want to do that.

In many ways, this 'regulation' makes it more likely that someone might be scammed, rather than to encourage me to leave it with the original provider.

Not at all. You say you are a DIY investor (someone not wanting to use an adviser). So, use a DIY provider. DIY/D2C and intermediary are two different distribution channels. D2C for those that want to DIY and intermediary for those that want to use advisers.

The fact there is a choice of distribution channels is a good thing. it allows those that want to DIY to do so.

sevenhills

Ergates wrote: »

Not so much to make money, as to avoid spending it.

Over the years *far* too many people have lost some/most/all of their pension pot to scammers and bad investments. To prevent this happening, the government put various pieces of legislation into place to protect people from themselves.

You might insist that you know what you're doing, but then so did many of the people who got scammed.

I paid over £1,000 when I transfered my Prudential pension, I didnt know what I was doing, but it was a lot of money for quite simple advice, just the money in my bank would have been simple.