What is a sipp trust?

candie01

What's the difference in moving my defined benefit pension to a SIPP trust rather than to aj bell/vanguard, Hargreaves lansdown etc what's on it for the sipp trust? They say annual fee of £400 which makes it sound too good to be true. 

bostonerimus

SIPPS are generally trusts and you direct the trustee to buy and sell investments for you. Who is the administrator for this "SIPP trust". What investments and withdrawal options does it offer you?

candie01

bostonerimus said:

SIPPS are generally trusts and you direct the trustee to buy and sell investments for you. Who is the administrator for this "SIPP trust". What investments and withdrawal options does it offer you?

The financial adviser has suggested I transfer my defined benefit pension as an insistent client to aj bell and a few days ago AJ bell.decided not to accept insistent clients anyone so the FA said he knows a company call the pension solutions group who would accept my pension and put it on the AJ bell platform. 

msallen

candie01 said:

The financial adviser has suggested I transfer my defined benefit pension as an insistent client 

This doesn't make any sense !

xylophone

This doesn't make any sense !

The Financial Adviser has indicated that a positive recommendation would not be  forthcoming but that the OP could still transfer out if he could find a provider willing to accept  the transfer?

He  also indicated that "AJ Bell was willing" (shades of Barkis)  but AJ Bell  have seen the future and it's litigation so have ditched the brides at the altar?

That said, I don't quite follow the PSG/AJ Bell link scenario .....

https://psgsipp.co.uk/our-products/psg-open/

SomeMadeUpName

candie01 said:

bostonerimus said:

SIPPS are generally trusts and you direct the trustee to buy and sell investments for you. Who is the administrator for this "SIPP trust". What investments and withdrawal options does it offer you?

The financial adviser has suggested I transfer my defined benefit pension as an insistent client to aj bell and a few days ago AJ bell.decided not to accept insistent clients anyone so the FA said he knows a company call the pension solutions group who would accept my pension and put it on the AJ bell platform. 

So essentially are you saying that PSG will provide a route to get your SIPP onto the AJBell platform despite AJBell not accepting insistent clients, and for that they charge £400pa (which presumably is on top of any AJBell charges)?

candie01

SomeMadeUpName said:

candie01 said:

bostonerimus said:

SIPPS are generally trusts and you direct the trustee to buy and sell investments for you. Who is the administrator for this "SIPP trust". What investments and withdrawal options does it offer you?

The financial adviser has suggested I transfer my defined benefit pension as an insistent client to aj bell and a few days ago AJ bell.decided not to accept insistent clients anyone so the FA said he knows a company call the pension solutions group who would accept my pension and put it on the AJ bell platform. 

So essentially are you saying that PSG will provide a route to get your SIPP onto the AJBell platform despite AJBell not accepting insistent clients, and for that they charge £400pa (which presumably is on top of any AJBell charges)?

Yes and my thoughts are, why would they take on n the liability for possibly only £400? If something sounds too good to be true, it usually is..

Malthusian

Why pay the £400pa at all when you could simply transfer the PSG pension to AJ Bell as DC to DC? AJ Bell would accept it at that point as it's no longer a DB transfer.

PSG wouldn't be taking on any liability - all the liability is with your charlatan financial adviser. Reputable financial advisers do not recommend a provider for and facilitate transfers that they've recommended against.

What are you investing the DB transfer in?

[Deleted User]

Malthusian said:

 Reputable financial advisers do not recommend a provider for and facilitate transfers that they've recommended against.

But, generally, the financial adviser will not state this before the client is committed to paying the full fee otherwise he really would not get much business; because one question the FA is always asked near the outset is "What happens if the advice is negative"? No adviser wants to answer that with "Not sure but I would already have your money." So the answer is generally tailored to make the options appear easily negotiable. Now that AJ Bell is no longer the go-to route, we can expect more stress on the these more exotic paths and the stakeholder pension option. 

Malthusian

ZingPowZing said:

But, generally, the financial adviser will not state this before the client is committed to paying the full fee otherwise he really would not get much business; because one question the FA is always asked near the outset is "What happens if the advice is negative"?

Most advisers don't want DB transfer business. Those who are still happy to advise on DB pensions wouldn't say "Not sure but I would already have your money" because a much more helpful answer for both the adviser and prospective punter would be "You would still be able to transfer out but would have to arrange everything yourself. Your DB scheme would require confirmation from us that you had received advice, which I would be happy to provide." An adviser who didn't know the answer wouldn't be advising on DB transfers.

[Deleted User]

Malthusian said:

ZingPowZing said:

But, generally, the financial adviser will not state this before the client is committed to paying the full fee otherwise he really would not get much business; because one question the FA is always asked near the outset is "What happens if the advice is negative"?

Most advisers don't want DB transfer business. Those who are still happy to advise on DB pensions wouldn't say "Not sure but I would already have your money" because a much more helpful answer for both the adviser and prospective punter would be "You would still be able to transfer out but would have to arrange everything yourself. Your DB scheme would require confirmation from us that you had received advice, which I would be happy to provide." An adviser who didn't know the answer wouldn't be advising on DB transfers.

Most advisers may not want DB transfer business, but there is no shortage of advisers wanting to sell DB transfer advice.
Ideally, advice not to transfer. Which means, at the consultation stage, less stress on "arranging everything yourself" - from rapidly narrowing options against a CETV deadline - and more stress on a letter that confirms what the client has paid for. Knock yourself out.

Of course an adviser will know the answer for going forward in the event of a negative recommendation; the fact that he may not share it with his client is like the crowning misfortune or insult of the process.