You could try above - tick "confirmed independent" and "pension transfer" when the menu comes up.
Finding IFA's that are authorised to do Pension transfers is easy enough its finding ones that are prepared to sign the form saying that they have given advice even if they advise against that is proving impossible.
You could try above - tick "confirmed independent" and "pension transfer" when the menu comes up.
Finding IFA's that are authorised to do Pension transfers is easy enough its finding ones that are prepared to sign the form saying that they have given advice even if they advise against that is proving impossible.
It is now a requirement that advisers must sign to say they have given advice even if the advice was to remain where it is. What they can do is refuse to transact the transfer themselves. This is in part due to conflicting position by the regulator that says it is perfectly acceptable to do things against advice by following the insistent client guidelines. However, it then also says advisers should not carry out instructions that they know to be wrong.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
It is now a requirement that advisers must sign to say they have given advice even if the advice was to remain where it is. What they can do is refuse to transact the transfer themselves.
On other threads that has always seemed a grey area , so interesting it is now a requirement .
On the other side a poster above said it was very difficult to find an IFA/transfer specialist to give a Yes unless they were involved in managing the investments afterwards. I guess this is a mixture of knowing at least the client will not go off and make poor investment decisions , which could lead to a complaint + new business for the IFA as well.
And it highlights the issue often mentioned that people who decide to DIY and accept the liability for DIY are then prepared to take any means possible to try and get their money back when they balls up.
The outcome of this case may lead to a loosening but I suspect it is too late for that.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
Has anyone managed to find an IFA that can help with the transfer of their DB Pension? I'm still looking. Recently, I went through the process with a company specialising in Pension Transfers. Apparently, a questionnaire that I completed showed I was averse to risk-taking and because of this, I could not transfer to their product.
Has anyone managed to find an IFA that can help with the transfer of their DB Pension?
Its about 1 in 10 IFAs doing it and around 4 in 10 with access to one doing it (i.e. the IFA doesnt do it be passes it to someone that does). So you should find one by ringing around.
Apparently, a questionnaire that I completed showed I was averse to
risk-taking and because of this, I could not transfer to their product.
DB pension transfers require taking on investment risk and with transfer values often being rather large values, this can mean low levels of volatility, even at the low risk end can result in monetary values moving a lot. For example,a value of £500k drop to £400k. That is quite normal and to be expected with DC pensions (indeed it could be more than that if you move higher up the scale from low/medium). Many people with DB schemes have never invested in their life. They are not used to seeing volatility and seeing £100k or so wiped off their value. So, if your pre-research questioning leads to the opinion that you are too cautious then you can expect many firms to reject you.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
A friend recently transferred two DB pensions into a drawdown pension fund. Wasn’t too difficult to find an IFA. They charged 3%. I don’t really understand all this ‘advice’ business. Well, I understand it in terms of helping to ensure people make informed decisions but these sorts of threads seem to imply the process is actually more about ‘permission’ than advice. I understood that a DB scheme will only transfer IF advice had been given by an IFA. Fine. But it seems that if the advice is NOT to transfer then the DB scheme won’t allow a transfer. That’s not an advice system that more of a permission system. Basically, people are not able to ignore an IFAs advice - at least not easily. Is that really what was intended?
I understood that a DB scheme will only transfer IF advice had been
given by an IFA. Fine. But it seems that if the advice is NOT to
transfer then the DB scheme won’t allow a transfer.
The ceding scheme doesnt need a positive decision. Just confirmation you have received regulated advice. Some receiving schemes will only accept transfers in if there is positive advice. That is a liability decision (they dont want the business risk as there have been a number of cases where people who transferred have gone on to complain or even take legal action against the provider).
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
Replies
You could try above - tick "confirmed independent" and "pension transfer" when the menu comes up.
Apparently this is a no go , as you could just say later that you were pressured to sign it .
It is now a requirement that advisers must sign to say they have given advice even if the advice was to remain where it is. What they can do is refuse to transact the transfer themselves. This is in part due to conflicting position by the regulator that says it is perfectly acceptable to do things against advice by following the insistent client guidelines. However, it then also says advisers should not carry out instructions that they know to be wrong.
On other threads that has always seemed a grey area , so interesting it is now a requirement .
On the other side a poster above said it was very difficult to find an IFA/transfer specialist to give a Yes unless they were involved in managing the investments afterwards. I guess this is a mixture of knowing at least the client will not go off and make poor investment decisions , which could lead to a complaint + new business for the IFA as well.
Its about 1 in 10 IFAs doing it and around 4 in 10 with access to one doing it (i.e. the IFA doesnt do it be passes it to someone that does). So you should find one by ringing around.
I don’t really understand all this ‘advice’ business. Well, I understand it in terms of helping to ensure people make informed decisions but these sorts of threads seem to imply the process is actually more about ‘permission’ than advice. I understood that a DB scheme will only transfer IF advice had been given by an IFA. Fine. But it seems that if the advice is NOT to transfer then the DB scheme won’t allow a transfer. That’s not an advice system that more of a permission system. Basically, people are not able to ignore an IFAs advice - at least not easily. Is that really what was intended?
The ceding scheme doesnt need a positive decision. Just confirmation you have received regulated advice. Some receiving schemes will only accept transfers in if there is positive advice. That is a liability decision (they dont want the business risk as there have been a number of cases where people who transferred have gone on to complain or even take legal action against the provider).