Low-cost SIPP provider who will accept AVC transfer without positive IFA advice.

caveman8006

I have a deferred DB company pension scheme due to come into payment at my NRA of 60 early next year with an annual pension of approximately £15,000. I also built up a separate AVC pot with the same employer currently valued at around £300,000. The scheme administrators Willis Towers Watson have given me the option to either transfer the AVC pot away to another SIPP provider in its entirety before retirement (for which they would NOT require independent positive IFA advice), or to use the pot to fund the tax-free PCLS when the DB pension is accessed with the proviso that the (substantial) residual balance is then used to enhance the Main Scheme benefit (but at a rather unattractive commutation rate of 1:40.4). As my wife and I have sufficient tax-free ISA income to live on and I am likely to remain a basic rate tax payer even with my State Pension , I would prefer to retain the AVC pot within a drawdown SIPP and eventually benefit from the IHT exemption rather than take the PCLS and additional pension.

However, I have approached HL and they are not willing to accept the AVC transfer without a positive IFA recommendation, even though WTW are happy and there appears to be no legal requirement for one in these circumstances. Does anybody know of a low-cost SIPP platform that would accept the transfer?

grnglide

A J Bell Youinvest would be worth a try?

Will they not let you take the remainder as a UFPLS? My scheme did. They won't let you move the remainder to another scheme? Mine would have done although they didn't advertise it. What I couldn't do was buy additional benefits in the main scheme which is what I would have to do, subject, obviously to the commutation rate.



Do you regard HL to be "a low-cost SIPP platform"?

Brynsam

Transfer into a stakeholder pension and then onward to your preferred choice of SIPP (it's a DC to DC transfer, so the SIPP provider no longer requires a positive recommendation).

dunstonh

However, I have approached HL and they are not willing to accept the AVC transfer without a positive IFA recommendation, even though WTW are happy and there appears to be no legal requirement for one in these circumstances. Does anybody know of a low-cost SIPP platform that would accept the transfer?

That is a commercial decision and they wont be alone in that.

xylophone

The scheme administrators Willis Towers Watson have given me the option to either transfer the AVC pot away to another SIPP provider in its entirety before retirement (for which they would NOT require independent positive IFA advice),

As here with LGPS?

https://mpfmembers.org.uk/content/transfer-your-avc-fund-another-pension-scheme-or-arrangement

A Pension Provider cannot be forced to accept a transfer but I must say I am rather surprised at HL's stance.

Have you tried

https://www.youinvest.co.uk/sipp

cloud_dog

Caveman, I would be interested in how you progress.

I am in a similar position (smaller amount) with the administrators confirming no advice is necessary (although I recognise it is more of a choice of the receiving scheme).

Ihave spoken with AJ Bell/YouInvest and the person I spoke to on the phone indicated that they would be willing to accept but, proof is in the pudding

Joey_Soap

Also try Close Bros. They also have a 0.25% annual platform charge. Certainly, a while back they would accept a transfer against advice, providing you have the proof of the advice.

jaybeetoo

Last year I transferred my AVC to Alliance Trust Savings - no financial advice required.

Brynsam

xylophone wrote: »

A Pension Provider cannot be forced to accept a transfer

They can if they are providing a stakeholder pension scheme - currently the only type of scheme which must accept any transfer from another registered pension scheme.

xylophone

a stakeholder pension scheme -

I note this is mentioned here

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/transfer-pension-scheme/

A stakeholder pension scheme is currently the only type of scheme which must accept any transfer from another registered pension scheme.


The OP had asked

Does anybody know of a low-cost SIPP platform that would accept the transfer?

Clearly some have taken a stand on DB transfers against advice.

https://www.telegraph.co.uk/pensions-retirement/financial-planning/i-was-forced-to-waste-1k-on-advice-when-all-i-wanted-was-to-move1/

Sipp providers said their decision not to accept transfers without a positive opinion was a “business decision”, not a legal one.

In addition, it appears that some providers will not accept a DB transfer/
transfer of scheme with safeguarded benefits without advice even where advice is not legally required.

And some pension providers will not allow even DC transfers within their own pension offerings without advice - presumably another "business decision".

In this particular case, the transfer is a DC transfer without safeguarded benefits so the refusal is odd - I suppose that HL are taking the view that the applicant might at some stage make a complaint that he would have been better off using the AVC against his PCLS/buying additional pension within the DB Scheme etc (which its rules would have allowed) and that these were "quasi safeguarded benefits"?