IFA taken over. Updated 15/10/20 and question

dunstonh

Hi again sorry for the error I've checked and it is biennial. My brain just typed biannual. 

I'm not sure how they get away with biennial.   MiFIDII requires ongoing servicing to be "at least annually".   Pensions are exempt from MiFIDII but best practice is to treat them the same as other tax wrappers.  

1.connect is DIY and just gives access to their portal and a newsletter. ( This is what they've moved my husband to, and are charging him 1% for as that was his old fee, despite the service being advertised as 0.5%)

They are charging for doing nothing other than software supply (portal)? - I know what I would tell them if that was me.

They are definitely an IFA and introduced themselves as one of the largest. How to I check if they are directly authorised or a network?

Look at the FCA register and see if they have a principle company.  Or look at their letterhead and the compliance message at the bottom. if it mentions appointed rep then it means they are a network member.

 If something fishy is going on is my pension at risk of being stolen or anything bad. 

Nothing sounds fishy and SL wont allow access to the third party bank accounts.

Secretsusie

Thanks dunstonh you've confirmed I'm not being unreasonable.  For my partner expecting us to be charged for a platform and doing nothing is beyond disbelief, especially as he's old enough to drawdown and we may want to do that.   For me I'm just not happy that the promised same service is that at all. Biennial just doesn't offer that, and no drawdown advice, it's just not suitable at all.  
If I find another IFA is it going to cost me lots to move? Not keen on racking up costs this close to drawing down. Have I got any claim against the old or new IFA for not now offering the ongoing service that was agreed to several years ago?  And how do I find another IFA?

dunstonh

If I find another IFA is it going to cost me lots to move?

Many IFAs will take over an existing platform investment and not charge a new amount but just carry on an ongoing charge instead.   However, you mention it is Standard Life.   Is it Standard Life Wrap or Standard Life Elevate?   Elevate is aimed at general practitioner IFAs who will not restrict themselves to one platform.   Standard Life Wrap is aimed at FAs and IFAs (particularly the wealth management types) who commit to only using that platform or commit to putting a certain high amount on it).   So many IFAs do not actually have access to SL Wrap and would need to move it.  They may charge an amount for doing that.    However, in our experience, the charges on alternative platforms, including SL Elevate can be cheaper than SL Wrap.  So, may not be a bad thing.

Have I got any claim against the old or new IFA for not now offering the ongoing service that was agreed to several years ago?

No.   An ongoing service is not a guarantee for life.  They are free to adjust their service and terms and give you the opportunity to end it each time they do.

And how do I find another IFA?

Google is not a bad option nowadays. 

For my partner expecting us to be charged for a platform and doing nothing is beyond disbelief, 

I'm not actually sure that such a charge is compliant.  The FCA require a service to be provided in return for the fee.   An annual valuation is pointless as platforms issue quarterly statements and all offer online access and most IFAs have a portal as well that they do not charge for clients to use.  Charging that amount for something that is not needed is greedy.  It is taking the P.

Secretsusie

Thanks once more dunstonh.  It's a standard Life wrap, invested in the old IFA risk level 7 plan. New firm is a IFA and does advertise as a wealth management firm. 
I know I need to do more research into pensions now and be far more active than I have been.  All I've done is set a risk level and let them get on with it.  So my options now are 1. To negotiate with them for a better level of service.  2. Move to another IFA, or 3. Move to a self managed low cost platform, one that allows me to just pick a risk level predecided plan and not individual shares , as I know I don't have time or expertise to do that, and that allows withdrawals as well which excludes vanguard.  
I assume I'll have to leave the standard Life wrap current selection of pension investments as it's their plan. 
Which leaves one more question , sorry, 5% of that fund is in woodford which is suspended, so has no value to transfer etc as I don't believe it's been sorted yet, will this prevent a move? 

Malthusian

Secretsusie said:
Which leaves one more question , sorry, 5% of that fund is in woodford which is suspended, so has no value to transfer etc as I don't believe it's been sorted yet, will this prevent a move? 

Shouldn't do. As I understand it, your pension isn't in drawdown yet (if it was, you would be stuck as partial transfers are not possible for drawdown funds).

It should be possible to transfer your pension to a new one in-specie (i.e. the old pension sends the funds to the new one as they are, rather than selling them and transferring cash). Whether the whole thing or just the Woodford fund. This assumes the new platform will accept the Woodford fund, but a genuinely indepdendent financial adviser would have no trouble using one that would.

Albermarle

Move to a self managed low cost platform, one that allows me to just pick a risk level predecided plan and not individual shares , as I know I don't have time or expertise to do that, and that allows withdrawals as well which excludes vanguard.

If you moved to a self managed pension/SIPP , then there will be plenty of alternatives to buying individual shares , and this is best avoided for most investors anyway . You maybe be able to transfer most of your current investments over ( in -specie in the jargon ) or in cash for all/part .

However just be aware that many SIPPs will try to guide inexperienced new investors to their own brand of managed funds ( with a risk level indicated) . These are OK but tend to be expensive  So ideally you should look for lower cost funds from the many available in the SIPP. 

Secretsusie

Thanks everyone. I have now spoken to the new firm , and yes it is exactly as I've understood it.  Which feels a poor level of service for the fees ( especially my husband's) The main reason we had gone with ongoing advice was due to needing withdrawal advice and that's just not available now. 
I'll be researching other IFA and also DIY platforms, and seeing if I think I have the confidence to do it alone.  I may post in a few days if that's ok, with questions and full details of circumstances for others ideas. 
I've booked a free pension wise phone call as a start and contacted two other local firms, both who show as authorised on the FCA register. 
Many thanks for all the advice.  

Secretsusie

Update and a question.  
So after much research I have appointed another IFA, much better fees, I really like the person and I'm not confident to manage it myself. 
However my current pension is on standard Life platform and part of the investment is in a Woodford fund and some property funds , which are both suspended.  
Standard Life won't allow a standard partial transfer and are demanding I leave three years fees in the account with the suspended funds.  Is this normal? 

AlanP_2

No idea if it's normal, but I can see why they are asking for that safety net.

Many property funds are now coming out of suspension, but Woodford is likley to drag on for a while yet.

I guess the answer depends on how much they want you to leave with them, the fees with SL and the deal with the new IFA. Have you asked the new IFA by the way as I would expect guidance and a viewpoint as part of the service they are giving you. 

Secretsusie

AlanP_2 said:

No idea if it's normal, but I can see why they are asking for that safety net.

Many property funds are now coming out of suspension, but Woodford is likley to drag on for a while yet.

I guess the answer depends on how much they want you to leave with them, the fees with SL and the deal with the new IFA. Have you asked the new IFA by the way as I would expect guidance and a viewpoint as part of the service they are giving you. 

Thanks.  Yes I have asked and they are trying to move them in situ to the new platform, I just wondered if this was SL being awkward or what normally happens