unlocking pension funds

dunstonh

Only purchsed via IFA...so i hav to pay them money for a list?..

A number of products and providers are only available if you use an IFA. That doesnt stop you approaching an IFA and asking what terms they will do on execution only for using that company. However, I mentioned a company just recently that only transacted through IFAs and was jumped on and accused of touting for business. Very harsh when you consider that a number of the companies mentioned on this site by others are IFAs themselves.

money for old rope!

Its not money for old rope when you realise that my software costs come to over £10k a year.

maybe 2 if u feel gererous

I wont list them but will answer as if I was doing it if it was my own money. I would use Selestia. They have a minimum of £3600 and will drawdown on protected rights and ordinary rights and being a fund supermarket they have the 1000 odd unit trust/oeic/sicav funds. So, its virtually the same as HL's SIPP in the way the product works except its classed as a personal pension which is why it can do protected rights.

If you do it on execution only terms of no initial commission (and maybe some fund based trail rebate if the fund is large enough) then it can be similar or be cheaper than HL's SIPP.

There are other providers that can be cheaper than HL as well as being cheaper than Selestia but they tend to come into play with higher fund values. A couple of these are pricing themselves to cherry pick the high net worth stuff and price themselves out of contention for small funds. Two of them are using a style of factory gate pricing which is likely to become standard in the next decade (although its not true factory gate pricing but getting there). Indeed, if factory gate pricing does arrive it will benefit the smaller IFA firms as there will be no more differential between IFAs based on purchasing power. We would all buy the products at the same price and bolt on our own charges. So, small would be able to compete with big if they want to.

EdInvestor

However, I mentioned a company just recently that only transacted through IFAs and was jumped on and accused of touting for business.

Quite the opposite: it was your refusal to mention the company that meant you could be accused of touting for business, as someone would have to pay you to get the information. If you post the info (as above) , no-one can accuse you of touting because the poster can then approach any IFA to do a deal with that company.

I am pleased that you have got this point.:)

dunstonh

The problem though is the question that follows next. Where can I get the Selestia pension.

Now that means seeing an IFA. Now there are lots of us around so that isnt a problem. The usual online ones mentioned here, such as Cavendish, only offer a limited panel of providers and products for execution only and Selestia isnt on that list so you cant use them. You are also looking for one that gets enhanced terms. On execution only with initial commission rebated you are looking at 3.5% rebate off the 5.2% initial charge on standard terms. IFAs with enhanced terms can get upto 4.5% rebated off the 5.2%. Plus, with larger fund values you can get fund based trail rebates as well (which is when it becomes cheaper than HL).

So, the problem there is that it then looks as if I am touting for business as I get the enhanced terms and will give fund based trail rebates on larger fund values. There may be thousands of IFAs that do the same but we cannot say "go to that IFA or go this one" because as it stands, I am the only one you know of that you can name for sure that can and will do it. If there was a list of 5 or 6 that we know 100% will do it then thats fair enough.

EdInvestor

LOL you'll be setting up a website next

dunstonh

Part of me would love to. Just so I can get a site up with definite terms to prove the point

However, I don't want to be a factory line for applications arriving in the post. I like the advice side and my set up is geared to that. I don't mind the odd PM or email asking me to do something on the cheap but I don't have the time to do it in bulk.

woody_56

Hi i have worked for Marks

Retired_I.F.A.

If you did at least you'd never have to worry about iindemnity cover, and compliance would be a doddle. But on the other hand there's a few ifa's who would be shouting "scab"

averageguy11

Duns ta for yur post of 11.06