Contingent Charging for DB transfers.........

L9XSS

to be banned by 1st October 2020.
however for those in financial hardship (ie potentially losing there home or terminal illness could be exempt).Seems the FCA are tightening the regulations around IFAs being able to bring in revenue through the (imho) costly fees that come into play.

Linton

The ban on contingent pricing was announced 3 weeks ago.  It seems pretty clear that it is not being done to make DB transfers easier or cheaper,  the opposite in fact. The stated intention is to remove any financial incentive to give a positive recommendation. So presumably by removing those IFAs who were swayed by such considerations it will be more difficult to find an IFA willing to  risk taking on the business at all.

See: https://www.fca.org.uk/publications/policy-statements/ps20-6-pension-transfer-advice-feedback-cp-19-25-final-rules

Given the advantages of DB schemes, the proportion of consumers that advisers have advised to transfer to DC schemes remains too high.

Joey_Soap

"Given the advantages of DB schemes, the proportion of consumers that advisers have advised to transfer to DC schemes remains too high."

I agree. It's hard to strike a balance, but sometimes people simply cannot be trusted to know what's in their own long term interests. Sad. But true.

Marcon

Joey_Soap said:

"Given the advantages of DB schemes, the proportion of consumers that advisers have advised to transfer to DC schemes remains too high."

I agree. It's hard to strike a balance, but sometimes people simply cannot be trusted to know what's in their own long term interests. Sad. But true.

Too many advisers don't know either!

Joey_Soap

Marcon said:

Joey_Soap said:

"Given the advantages of DB schemes, the proportion of consumers that advisers have advised to transfer to DC schemes remains too high."

I agree. It's hard to strike a balance, but sometimes people simply cannot be trusted to know what's in their own long term interests. Sad. But true.

Too many advisers don't know either!

Indeed. Show me the client's yachts please?

HappyHarry

Joey_Soap said:

Marcon said:

Joey_Soap said:

"Given the advantages of DB schemes, the proportion of consumers that advisers have advised to transfer to DC schemes remains too high."

I agree. It's hard to strike a balance, but sometimes people simply cannot be trusted to know what's in their own long term interests. Sad. But true.

Too many advisers don't know either!

Indeed. Show me the client's yachts please?

Whilst I know many clients with yachts, I don't know any advisers with one. I'm sure there are some, but the implication that advisers are making more than their clients is ludicrous.

Joey_Soap

HappyHarry said:

Joey_Soap said:

Marcon said:

Joey_Soap said:

"Given the advantages of DB schemes, the proportion of consumers that advisers have advised to transfer to DC schemes remains too high."

I agree. It's hard to strike a balance, but sometimes people simply cannot be trusted to know what's in their own long term interests. Sad. But true.

Too many advisers don't know either!

Indeed. Show me the client's yachts please?

Whilst I know many clients with yachts, I don't know any advisers with one. I'm sure there are some, but the implication that advisers are making more than their clients is ludicrous.

Looking at your signature, I can see you have a dog in that fight. I don't believe you and many others here won't believe you either. Final word, I am not picking a fight, I am expressing an opinion.

Diplodicus

The idea of compelling people to take expert advice before making such a big decision was well meant. But it was naive to expect that advice to be impartial. And now the industry seems to be in a dreadful pickle.

Prism

Joey_Soap said:

HappyHarry said:

Joey_Soap said:

Marcon said:

Joey_Soap said:

"Given the advantages of DB schemes, the proportion of consumers that advisers have advised to transfer to DC schemes remains too high."

I agree. It's hard to strike a balance, but sometimes people simply cannot be trusted to know what's in their own long term interests. Sad. But true.

Too many advisers don't know either!

Indeed. Show me the client's yachts please?

Whilst I know many clients with yachts, I don't know any advisers with one. I'm sure there are some, but the implication that advisers are making more than their clients is ludicrous.

Looking at your signature, I can see you have a dog in that fight. I don't believe you and many others here won't believe you either. Final word, I am not picking a fight, I am expressing an opinion.

Do you think that a financial advisor is the kind of job that pays enough to afford a yacht? I guess it depends on how big the yacht is.
I am not a financial advisor but one of my friends is - he isn't especially well paid.

Linton

Diplodicus said:

The idea of compelling people to take expert advice before making such a big decision was well meant. But it was naive to expect that advice to be impartial. And now the industry seems to be in a dreadful pickle.

The FCA believes that any lack of impartiality was to err on the side of insufficient caution.  Most people who complain on this forum about the issue would like IFAs to show less caution.   IFAs are stuck in the middle and I cant blame most of them wanting nothing to do with DB transfers as they are criticised if they say no and may have to bear the costs of any compensation judged to be due to people who mess up their investing after transferring if they say yes, or even if they dont say no firmly enough.

Albermarle

Prism said:

Joey_Soap said:

HappyHarry said:

Joey_Soap said:

Marcon said:

Joey_Soap said:

"Given the advantages of DB schemes, the proportion of consumers that advisers have advised to transfer to DC schemes remains too high."

I agree. It's hard to strike a balance, but sometimes people simply cannot be trusted to know what's in their own long term interests. Sad. But true.

Too many advisers don't know either!

Indeed. Show me the client's yachts please?

Whilst I know many clients with yachts, I don't know any advisers with one. I'm sure there are some, but the implication that advisers are making more than their clients is ludicrous.

Looking at your signature, I can see you have a dog in that fight. I don't believe you and many others here won't believe you either. Final word, I am not picking a fight, I am expressing an opinion.

Do you think that a financial advisor is the kind of job that pays enough to afford a yacht? I guess it depends on how big the yacht is.
I am not a financial advisor but one of my friends is - he isn't especially well paid.

I guess that if you are the head honcho/owner  of a reasonable size group of offices and have been doing the job for many years , you could maybe afford a yacht .
Otherwise I do not think your average IFA is such a big earner.