Transferring old workplace pension into a SIPP

Dale72

Fair point Albermarle, and I'm certainly not complaining about potentially having that size a transfer out value given the relatively short time I worked for them, more the fact I can't get my hands on it!!

I have a question relating to abridged advice, that someone with compliance experience might be able to help with. I was told by the IFA that abridged advice will only give one of 2 possible outcomes, either a definitive no, or an unclear outcome which would need the full works to come to an answer. If the answer was a definitive no, why would this not satisfy the legal requirement given that there would be no chance of a different outcome if I were to take the full advice. 

dunstonh

If the answer was a definitive no, why would this not satisfy the legal requirement given that there would be no chance of a different outcome if I were to take the full advice. 

Statistically (historically), around 9 out 10 people are best not transferring. Its a bit lower than that now but the majority should stay put.     

So, paying a smaller fee to confirm its a no go will benefit the majority.

If you are in the minority that want to do it even if its not in your best interests, then you pay more for that for full advice.

Dale72

I appreciate all that dunstonh, but that's not a legal argument as to why abridged advice to definitely not transfer, doesn't meet the legal requirement.

xylophone

The point is that the Trustees of the ceding scheme will not permit the transfer without confirmation that the appropriate advice process has been followed.

Appropriate advice is full advice.
https://www.thepensionsregulator.gov.uk/en/document-library/regulatory-guidance/db-to-dc-transfers-and-conversions

dunstonh

Dale72 said:

I appreciate all that dunstonh, but that's not a legal argument as to why abridged advice to definitely not transfer, doesn't meet the legal requirement.

xylophone has covered one side of it (the ceding scheme).  However, the receiving scheme will also require the adviser to verify they have given regulated advice (not abridged advice)

Dale72

So if the compliance department of the IFA are satisfied that abridged advice meets the legal requirement (given that full advice wouldn't change the outcome) then this should be enough.

dunstonh

Dale72 said:

So if the compliance department of the IFA are satisfied that abridged advice meets the legal requirement (given that full advice wouldn't change the outcome) then this should be enough.

no.......

HappyHarry

Dale72 said:

So if the compliance department of the IFA are satisfied that abridged advice meets the legal requirement (given that full advice wouldn't change the outcome) then this should be enough.

The FCA has made clear that abridged advice does not meet the standard necessary.

Dale72

Then this is ethically very suspect. Effectively what the law is saying, is that I need to pay an additional £2200 for full advice knowing that I'm only going to get the same answer.

HappyHarry

Dale72 said:

Then this is ethically very suspect. Effectively what the law is saying, is that I need to pay an additional £2200 for full advice knowing that I'm only going to get the same answer.

Not quite. The rules say that an adviser must not provide confirmation that advice has been given, if only abridged advice is provided.

There is nothing in the rules stating what the charges have to be, only that the charges must not be contingent on the outcome of the advice.

COBS 19.1A.5 R

A firm must not provide a confirmation for the purposes of section 48 of the Pension Schemes Act 2015 unless it has provided full pension transfer or conversion advice.