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

xylophone

as I've been waiting until retirement age to start the process 

What exactly do you mean by this?

DeadlyD

xylophone said:

as I've been waiting until retirement age to start the process 

What exactly do you mean by this?

To initiate the process with a Financial Advisor, I've waited until I am at an age I can retire. 

xylophone

That statement lacks candour.

No - on the contrary - it is candid and factual.

dunstonh

I've tried AVIVA and Standard Life for a stakeholder and they wont accept an insistent client the latter may through an IFA.(?) 

Both will accept an insistent client via an IFA.   Indeed, most providers offering products via intermediaries will.   THe IFA carries the liability in those cases, not the provider.   However, without an IFA, the provider would carry the liability.   So, providers will not accept insistent clients where it isn't going through an adviser agency.

So, will an IFA accept an insistent client and where do these live?? 

Insistent client was always a difficult one as the FCA gave conflicting information.    It said that as long as an adviser followed the insistent client process (which was left a little vague at times as to what was best practice) then as adviser shouldn't have a problem.  However, it also said that an adviser should not carry out a transaction that it considers to be wrong.    So, the PI insurers basically put a block on it by telling firms they would not cover insistent client cases.

DeadlyD

Both will accept an insistent client via an IFA.   Indeed, most providers offering products via intermediaries will.   THe IFA carries the liability in those cases, not the provider.   However, without an IFA, the provider would carry the liability.   So, providers will not accept insistent clients where it isn't going through an adviser agency.
 This filled me with hope that the IFA (I currently have pensions with SJP but they don't want to even carry the suitability) will take an insistent client on board however.. 
So, the PI insurers basically put a block on it by telling firms they would not cover insistent client cases.

So basically I won't find an IFA that will take me on as an insistent client because the IFA wont have insurance. 

I am devastated this has basically ruined my life. There is zero point asking for a transfer paying £6,000 for no IFA to take me on - is that right? 
Thanks for your straightforward response.. its a minefield to say the least. 

DeadlyD

dunstonh said:

Both will accept an insistent client via an IFA.   Indeed, most providers offering products via intermediaries will.   THe IFA carries the liability in those cases, not the provider.   However, without an IFA, the provider would carry the liability.   So, providers will not accept insistent clients where it isn't going through an adviser agency.

Filled me with hope until  

Insistent client was always a difficult one as the FCA gave conflicting information.    It said that as long as an adviser followed the insistent client process (which was left a little vague at times as to what was best practice) then as adviser shouldn't have a problem.  However, it also said that an adviser should not carry out a transaction that it considers to be wrong.    So, the PI insurers basically put a block on it by telling firms they would not cover insistent client cases.

So basically I won't find an IFA that will take me on as an insistent client because the IFA wont have insurance. 

dunstonh

So basically I won't find an IFA that will take me on as an insistent client because the IFA wont have insurance. 
I am devastated this has basically ruined my life. There is zero point asking for a transfer paying £6,000 for no IFA to take me on - is that right? 
Thanks for your straightforward response.. its a minefield to say the least. 

If the transfer is justified, then you will have no problem finding an IFA that will recommend transferring it.     Recommended transfers are broadly back to the levels they were before the factory line spammers got involved and were doing it willy nilly.

It is the borderline cases or the clear cut wrong cases that have hit the buffers and without the insistent client option being available to you any more, you wouldn't get it transferred. 

Prism

DeadlyD said:

Please help! and go gentle on me it my first post. I do know what I am doing with the transfer and it will offer me the chance to pay off my mortgage, leave a highly stressful job and care for my elderly parents. I know that's no "valid" reason to transfer, but I'm at my wits end as I've been waiting until retirement age to start the process and now it looks like I'm going to have my life taken away from me. 

So considering other options, do you not have the ability to take your DB pension early including a tax free lump sum. Would this not offer you a way of retiring early plus something to put towards the mortgage (which is usually not the best plan anyway). This is the same pension you have been contributing to for years so is there no way of making it work rather than worrying about other options you may not have.

DeadlyD

dunstonh said:

If the transfer is justified, then you will have no problem finding an IFA that will recommend transferring it.     Recommended transfers are broadly back to the levels they were before the factory line spammers got involved and were doing it willy nilly.

It is the borderline cases or the clear cut wrong cases that have hit the buffers and without the insistent client option being available to you any more, you wouldn't get it transferred. 

I'm struggling in that the Financial Advisors that have insurance (SJP) are telling me its highly unlikely I will get a recommendation as there doesn't seem to be a justification of a recommendation unless you are terminally ill (my interpretation they don't tell you exactly what is a viable reason to transfer out. My justification is to retire early to care for my parents, pay my mortgage off, invest for inheritance purposes and all these are discounted. I do have SIPPs too, am I missing something? 

dunstonh

I'm struggling in that the Financial Advisors that have insurance (SJP) are telling me its highly unlikely I will get a recommendation as there doesn't seem to be a justification of a recommendation unless you are terminally ill (my interpretation they don't tell you exactly what is a viable reason to transfer out.

All advisers have to have PI insurance. There is no choice. Advisers cannot transact in areas that they do not hold regulatory permissions or PI insurance on.   SJP is a tied salesforce and not an IFA.   They can restrict their services.  larger company FAs will restrict what will and wont do as they have to cater for hundreds or thousands of FAs that will have variable knowledge and ability.  So, you often find their systems and controls are set to cater for the lowest common denominator.

I am not saying your justification is strong.   Paying off the mortgage from the pension is rarely a good idea.  Inheritance can be just as long as you remain in a strong financial position.    Maybe you should speak with a large regional IFA firm.  Not a small local office but one that perhaps has a few branches in the local towns/city.  i.e. one that is not too small that it doesn't want to do DB transfers and one that is not too big and restricts more.

. I do have SIPPs too, am I missing something? 

So, could you use the SIPPs to achieve what you want and keep the DB scheme running?