Advisor refusing to allow drawdown?

dunstonh

Linton said:

dunstonh said:

 when I contacted them they told me if they didn't support the reason for withdrawal it couldn't be released,

This would suggest the adviser is an FA and not an IFA.   Tied reps of the provider (FAs) will have restrictions on them that can prevent them from carrying out a transaction that does not pass their company requirements.

I've recontact them to say I wish to go ahead with it, their reply is "to remind you legislation requires an advice process to confirm viability on a range of points, I don't think that's certain to support" are you aware of any legislation that they may be referencing?

There is no legislation, but FCA rules require a process to be in place that issues the risk warnings where non-advised drawdown is requested.  However, where the provider only offers drawdown via their own advice process, then they are allowed to refuse if they feel the transaction you are doing is unsuitable.    This is one of those risks of using a sales rep FA instead of an IFA or going DIY.

And in most cases, using your pension to pay reduce the mortgage is not considered a sensible thing to do.   It can be in some cases but not in most.

IFAs can also refuse to carry out transactions that they feel are unsuitable but most providers that IFAs use have processes in place to allow the consumer to carry it out without advice which protects the IFA from being sued/complained about later when the person realises it was the wrong thing to do.

IFA friend tells me that whilst I should take advice and consider the repercussions etc that the final decision is mine and that I am entitled to withdraw the 25% but pension advisor seems to be telling me that if he advises against it then the funds can't be released,

They are both right.    All you need to do is transfer the pension to a DIY provider and do it via them.   

Could there be a GAR or similar where Advice is required?  If so could the OP have the same problems as those wanting to transfer a DB pension?

I don't believe SJP have any pensions with GARs.    I think they did offer S32 buy out bonds. So, safeguarded benefits on those could trigger the advice required rule and would fit with the legislation comment (Section 48 of the Pension Schemes Act) rather than FCA rules being spoken as if "its the law".

So, maybe we should throw that question back to the OP. i.e. Do you have any safeguarded benefits on the pension (such as guaranteed annuity rates, Guaranteed minimum pension, guaranteed minimum maturity value, final salary underpin)

LHW99

dunstonh said:

Linton said:

dunstonh said:

 when I contacted them they told me if they didn't support the reason for withdrawal it couldn't be released,

This would suggest the adviser is an FA and not an IFA.   Tied reps of the provider (FAs) will have restrictions on them that can prevent them from carrying out a transaction that does not pass their company requirements.

I've recontact them to say I wish to go ahead with it, their reply is "to remind you legislation requires an advice process to confirm viability on a range of points, I don't think that's certain to support" are you aware of any legislation that they may be referencing?

There is no legislation, but FCA rules require a process to be in place that issues the risk warnings where non-advised drawdown is requested.  However, where the provider only offers drawdown via their own advice process, then they are allowed to refuse if they feel the transaction you are doing is unsuitable.    This is one of those risks of using a sales rep FA instead of an IFA or going DIY.

And in most cases, using your pension to pay reduce the mortgage is not considered a sensible thing to do.   It can be in some cases but not in most.

IFAs can also refuse to carry out transactions that they feel are unsuitable but most providers that IFAs use have processes in place to allow the consumer to carry it out without advice which protects the IFA from being sued/complained about later when the person realises it was the wrong thing to do.

IFA friend tells me that whilst I should take advice and consider the repercussions etc that the final decision is mine and that I am entitled to withdraw the 25% but pension advisor seems to be telling me that if he advises against it then the funds can't be released,

They are both right.    All you need to do is transfer the pension to a DIY provider and do it via them.   

Could there be a GAR or similar where Advice is required?  If so could the OP have the same problems as those wanting to transfer a DB pension?

I don't believe SJP have any pensions with GARs.    I think they did offer S32 buy out bonds. So, safeguarded benefits on those could trigger the advice required rule and would fit with the legislation comment (Section 48 of the Pension Schemes Act) rather than FCA rules being spoken as if "its the law".

So, maybe we should throw that question back to the OP. i.e. Do you have any safeguarded benefits on the pension (such as guaranteed annuity rates, Guaranteed minimum pension, guaranteed minimum maturity value, final salary underpin)

The OP did say "they are the advisor we saw a few years ago who amalgamated our existing pension pots into one fund" - is that likely to be an S32, I thought they only related to DB schemes?

dunstonh

LHW99 said:

dunstonh said:

Linton said:

dunstonh said:

 when I contacted them they told me if they didn't support the reason for withdrawal it couldn't be released,

This would suggest the adviser is an FA and not an IFA.   Tied reps of the provider (FAs) will have restrictions on them that can prevent them from carrying out a transaction that does not pass their company requirements.

I've recontact them to say I wish to go ahead with it, their reply is "to remind you legislation requires an advice process to confirm viability on a range of points, I don't think that's certain to support" are you aware of any legislation that they may be referencing?

There is no legislation, but FCA rules require a process to be in place that issues the risk warnings where non-advised drawdown is requested.  However, where the provider only offers drawdown via their own advice process, then they are allowed to refuse if they feel the transaction you are doing is unsuitable.    This is one of those risks of using a sales rep FA instead of an IFA or going DIY.

And in most cases, using your pension to pay reduce the mortgage is not considered a sensible thing to do.   It can be in some cases but not in most.

IFAs can also refuse to carry out transactions that they feel are unsuitable but most providers that IFAs use have processes in place to allow the consumer to carry it out without advice which protects the IFA from being sued/complained about later when the person realises it was the wrong thing to do.

IFA friend tells me that whilst I should take advice and consider the repercussions etc that the final decision is mine and that I am entitled to withdraw the 25% but pension advisor seems to be telling me that if he advises against it then the funds can't be released,

They are both right.    All you need to do is transfer the pension to a DIY provider and do it via them.   

Could there be a GAR or similar where Advice is required?  If so could the OP have the same problems as those wanting to transfer a DB pension?

I don't believe SJP have any pensions with GARs.    I think they did offer S32 buy out bonds. So, safeguarded benefits on those could trigger the advice required rule and would fit with the legislation comment (Section 48 of the Pension Schemes Act) rather than FCA rules being spoken as if "its the law".

So, maybe we should throw that question back to the OP. i.e. Do you have any safeguarded benefits on the pension (such as guaranteed annuity rates, Guaranteed minimum pension, guaranteed minimum maturity value, final salary underpin)

The OP did say "they are the advisor we saw a few years ago who amalgamated our existing pension pots into one fund" - is that likely to be an S32, I thought they only related to DB schemes?

S32s were typically used with DB schemes and scheme wind ups.  It could include money purchase occupational pensions but not personal pensions.   You would normally get one S32 buy out bond per scheme transferred.  Not consolidated into one.

artyboy

SJP... ouch 

Had a cold call followed by an attempted hard sell from them, years ago when I was younger and more naive. Consider it one of my luckier escapes that I wasn't persuaded to sign.