Pension has finally landed - As an insistent client acting against advice -*DOORS CLOSED 03/09/2021*

xylophone

But if, as you say, that is not the adviser’s responsibility; 

I said that it was not the responsibility of the PTS that the client finds difficulties in exercising his wish to transfer out against advice.

And I think that in his discussion with the client, the adviser should make it clear that he will be unable to assist in any transfer against advice and that any such transfer will not be easy.

Diplodicus

jamesd said:

xylophone said:

 If the client in practical terms is unable to make that choice, the pension advice process is broken.

That is not the responsibility of the Pension Transfer Specialist.

He has fulfilled the contract with his client to provide advice on the transfer.

It is the responsibility of the adviser because they are required to treat their clients fairly. If they advise knowing that a client is to transfer anyway and that there are no ways to do that then they are selling them a service that they can't use as intended. And that's failing to treat their client fairly.

Of course I'm not happy about this situation and it shouldn't be necessary for advisers to even think about this, but in the current circumstances it is and they must provide a service that their clients can really use.

Exactly right.

"Cutting your costs, fighting your corner." Refers to the consumer.

HappyHarry

Diplodicus said:

xylophone said:

 If the client in practical terms is unable to make that choice, the pension advice process is broken.

That is not the responsibility of the Pension Transfer Specialist.

He has fulfilled the contract with his client to provide advice on the transfer.

If the client wishes to proceed against advice then it is up to him to explore any available pathway.

If the pathway has obstacles, it is the pension providers who have put them there.

But the client’s contact through this process is not the pension provider but the financial adviser. The client engages the financial adviser from the position of a supplicant. He expects the adviser to know more than him and, since he is paying him handsomely, may reasonably expect the adviser to be on his side. Failing that, should at least expect the adviser to be honest at the outset about how difficult it would be to effect a transfer by himself.

Are you suggesting that it should not concern the PTS whether their client is able to transfer against a recommendation?

It would not concern me whether or not a client is able to transfer against my recommendation.

In respect of a potential DB transfer, a client employs me to recommend a course of action, i.e. to recommend a transfer of their CETV or to retain their DB pension. The client pays me for the advice I give, and then the client follows that advice (I have never seen otherwise).

I would not expect a client to employ me to make a recommendation, for which they have already made their own mind up about. If a prospective client approached me, saying they wanted advice but were intending to transfer regardless, I would decline to give advice. 

As an adviser, I specialise in providing advice, not rubber-stamping transfers. I have no interest in providing advice to those who do not want it, for which I make no apologies.

HappyHarry

jamesd said:

xylophone said:

 If the client in practical terms is unable to make that choice, the pension advice process is broken.

That is not the responsibility of the Pension Transfer Specialist.

He has fulfilled the contract with his client to provide advice on the transfer.

It is the responsibility of the adviser because they are required to treat their clients fairly. If they advise knowing that a client is to transfer anyway and that there are no ways to do that then they are selling them a service that they can't use as intended. And that's failing to treat their client fairly.

Of course I'm not happy about this situation and it shouldn't be necessary for advisers to even think about this, but in the current circumstances it is and they must provide a service that their clients can really use.

I agree. If the client is going to attempt a transfer regardless of the advice, the adviser should decline to give advice. Otherwise, the adviser is putting themselves in a position where they effectively have a conflict of interest.

However, most clients look for advice as they do not know whether or not it is likely to be in their best interest to transfer. In this situation, an adviser can readily provide that advice, or abridged advice, without there being a conflict of interest..

DaveT55

QrizB said:

DaveT55 said:

If we have IFA advice (negative) that will satisfy the DB pension scheme to allow the transfer to take place is it an option to transfer the pension to an overseas provider (USA)? My partner has dual citizenship.

A QROPS? Apparently there are some IRS issues with transfers to the US (or at least Wikipedia thinks so).

Thanks. Looks like overseas route is to be avoided, especially when not in country.

Is anyone able to provide further information on the SSAS route? I operate a ltd company and have done for several years. My wife (who holds the deferred DB pension we are wanting to transfer) is not presently connected with the business as she has  private sector employment. Could she become a non exec director for this transaction to take place.  

RoadToRiches

DaveT55 said:

QrizB said:

DaveT55 said:

If we have IFA advice (negative) that will satisfy the DB pension scheme to allow the transfer to take place is it an option to transfer the pension to an overseas provider (USA)? My partner has dual citizenship.

A QROPS? Apparently there are some IRS issues with transfers to the US (or at least Wikipedia thinks so).

Thanks. Looks like overseas route is to be avoided, especially when not in country.

Is anyone able to provide further information on the SSAS route? I operate a ltd company and have done for several years. My wife (who holds the deferred DB pension we are wanting to transfer) is not presently connected with the business as she has  private sector employment. Could she become a non exec director for this transaction to take place.  

Think you're going to have to do some studying up on this, I found the following which may give you a start - try looking around on gooogle.  https://professionalparaplanner.co.uk/guide-to-setting-up-a-ssas/

and on here https://forums.moneysavingexpert.com/discussion/4266821/setting-up-and-administering-your-own-ssas-pension-scheme

DaveT55

Thanks for the info - Been reading up this morning and looks as if it's a chat with the DB scheme to see if they would even entertain a SSAS transfer and the overall costs of appointing an administrator to set this up/ manage and potentially close this down at a later date. There may be other tax advantages to my company in going down the SASS route also rather than my current SIPP, so certainly worth a discussion with them. A huge Faff and need to weigh up the costs, but if it gets us what we want then worth it. 

Only other alternative is finding an IFA willing to take a bung £K for the positive advice?

Pablo7474

Or keep the DB and find a way to use this to meet your objectives is maybe a better alternative to bribing a corrupt IFA? 

wjr4

DaveT55 said:

Thanks for the info - Been reading up this morning and looks as if it's a chat with the DB scheme to see if they would even entertain a SSAS transfer and the overall costs of appointing an administrator to set this up/ manage and potentially close this down at a later date. There may be other tax advantages to my company in going down the SASS route also rather than my current SIPP, so certainly worth a discussion with them. A huge Faff and need to weigh up the costs, but if it gets us what we want then worth it. 

Only other alternative is finding an IFA willing to take a bung £K for the positive advice?

No IFA would do that. 

Dale72

wjr4 said:

DaveT55 said:

Thanks for the info - Been reading up this morning and looks as if it's a chat with the DB scheme to see if they would even entertain a SSAS transfer and the overall costs of appointing an administrator to set this up/ manage and potentially close this down at a later date. There may be other tax advantages to my company in going down the SASS route also rather than my current SIPP, so certainly worth a discussion with them. A huge Faff and need to weigh up the costs, but if it gets us what we want then worth it. 

Only other alternative is finding an IFA willing to take a bung £K for the positive advice?

No IFA would do that. 

Lol, yeah right!!