BT DB Pension Advice Fee (Hub Pension Consulting)

soonretire

I am looking to transfer out of my BT Pension. This is what HUB said to me:

With regards to your query, I can confirm that the fees will be £875, however that would be for the advice and any implementation of that advice. That is to say that we would offer you an advice call and following that call the adviser will provide you with a formal recommendation report.

If the advice was to transfer to your SIPP then we would oversee this transfer. 

The problem is that the transfer is then linked to the platform of their choice and they would not disclose the platform name or its fees. I am therefore pressing ahead with another Transfer specialist. The cost is c£5k but I think its a better fit to what I need. If the advice is positive I can use this to move to any platform who accepts Transfers. If its negative they have confirmed they have an arrangement with a reputable platform provider to accept insistent clients. So lets see.

Diplodicus

     Oh oh

xylophone

https://www.hub-group.co.uk/our-solutions/defined-benefit/

The service process is described  in the link above - it seems to start with "abridged advice".

msallen

xylophone said:

Don't get hung up on the VAT. The OP didn't mention this, it was only introduced by a later poster who clearly has no comprehension of DB transfers.

I've no idea how much the first poster  just to note the VAT knows about DB transfers but I think that we may be sure that Duncan and Harry, (both qualified FAs) who also reference the subject,  have adequate comprehension of DB transfers.....

I would reply, seeing as you quoted me, but I have no idea what you mean ;-)

idontknow2

xylophone said:

https://www.hub-group.co.uk/our-solutions/defined-benefit/

The service process is described  in the link above - it seems to start with "abridged advice".

So this means that the only outcome can be not to transfer?

From ftadvisor.com  "Abridged advice is an attempt to allow consumers access to advice surrounding defined benefit transfers now the contingent charging ban is in place. The Financial Conduct Authority hoped it would filter out those for whom a pension transfer is unlikely to be suitable before they pay for full advice.

It sits in between triage and full pension transfer advice but can only result in a personal recommendation to not transfer out of a defined benefit scheme.

First mooted by the regulator in a defined benefit transfer paper in July 2019 abridged advice launched in October last year, but to a somewhat frosty reception with questions surrounding the level of uptake and concerns it would increase consumer confusion."

They would be correct about the confusion part for me.  

I am at a loss as to the purpose of such advice, other than to relieve me of £875.. plus VAT?

I did actually ask as part of the initial conversation whether they regularly advised people to transfer out and they responded that they did but could not confirm the % overall.

Not really keen to pursue things any further.  I understand that for "most people" transferring out of a DB pension is a risk and not the best course of action but it annoys me that to this point in my life I have been responsible for all of my decisions and seemed to have been capable of those decisions.  However, even if I hadn't it is my decision to take surely?  

I am sure you see this sort of rant/response all the time so apologies in advance.

HappyHarry

You're not the only one to feel that way.

The law says you need to take regulated advice in order to transfer a DB pension with a transfer value of cover £30,000.

The regulator (FCA) tells advisers to start from the assumption that a transfer is not in an individuals best interest.

The FOS has commented that there are "only rare interests where transferring from a DB scheme is in the interests of a consumer".

PI insurance for those advisers wanting to remain in the DB transfer area has become extortionate or impossible to acquire.

This means advisers need to be very careful, and very certain prior to recommending a transfer. There is a huge risk to an adviser with the potential of a future upheld complaint and associated compensation many years down the line. 

There are now far fewer advisers working in the DB transfer area. However, the remaining pool tends to be better quality than before. 

The advice costs in relation to DB transfers have soared. 

The pension providers are refusing to accept funds if the regulated advice has been not to transfer.

The consumer is left feeling helpless, and frustrated at the system. Some blame the legislation, some blame the advisers, some blame the pension companies. 

I think that probably summarises the issues you are facing.

xylophone

I would reply, seeing as you quoted me, but I have no idea what you mean ;-)

Sorry, I should have been clearer.

The first mention of VAT was here

https://forums.moneysavingexpert.com/discussion/comment/78665439/#Comment_78665439

Seems to me that 875 (+VAT) gets you not much more than you would get for free on this forum.

and it was really just noted that it was charged.

It was only then that the VAT issue was picked up (and then by  Duncan and Harry (IFAs)) because of the issue they identify (intermediation ect) in subsequent posts.

xylophone

Not really keen to pursue things any further. 

Did you see soon retire's post here

https://forums.moneysavingexpert.com/discussion/comment/78667545/#Comment_78667545

It has been suggested (see earlier posts in the thread) that you telephone HUB in order to ascertain exactly what service is being offered for the £875.

As to the "abridged advice" the web site says

• Next, we provide each individual member with ‘abridged advice’. This involves getting to know them well enough to understand whether a transfer is likely to be in their best interests or not. This means they don’t go through the full advice journey – or pay the full advice fee – if it’s not appropriate for them to do so.

 

• If it is clear from this initial stage that a transfer wouldn’t be right for them, we’ll recommend that they stay in the scheme. If it’s not clear whether a transfer would be appropriate or not, they will then proceed to a further advice stage.

Here is a link to The Pension Transfer Gold Standard referenced in this post

  https://forums.moneysavingexpert.com/discussion/comment/78666561/#Comment_78666561

https://www.thepfs.org/media/10121247/pension-transfer-gold-standard-logo-consumer-guide-a5-size-web-p1.pdf

I have read through all the links again and I have to say that I  don't see what exactly the BT/HUB  proposal offers.

idontknow2

Yes I did see the post from soonretire and I am interested in perhaps pursuing a similar route and appreciate all of the advice.  I will also ask HUB some of the pertinent questions mentioned in the post so far.

thanks for all the comments/interest

xylophone

I will also ask HUB some of the pertinent questions mentioned in the post so far.

It would be interesting to hear how this works out.