Insistent client pension transfer 16 January at 2:18PM in Pensions, annuities & retirement planning 30 replies 2.4K views

Bennythedog

Sorry if this has been brought up before

Does anyone know a SIPP provider who will accept an insistent client transfer?

I'm asking on behalf of a friend who has a DC scheme with RST attached which makes it a DB scheme for transfer purposes

The IFA has recommended not to transfer but he has gone down the insistent client route. Pension is worth about £100k

Thanks

Prism

As far as I know there are non currently.

Albermarle

If I remember correctly from various similar threads, no pension provider dealing direct with the public will accept a transfer from an insistent client. However I think it has been mentioned there maybe one or two that can only be accessed by an IFA. However I presume most of the well known providers will still not accept and probably most IFA's would avoid such a transaction anyway.

xylophone

https://forums.moneysavingexpert.com/discussion/comment/78700657#Comment_78700657

There was discussion in the above.

Bennythedog

Thanks for the links. The previous thread was a good read

I have some more info

My friend says he went down the insistent client route because he believed (wrongly as it turned out) that he would be able to transfer the pension to HL

The IFA told him that as a plan B he would be able to transfer it to their own SIPP provider, and then transfer it to  HL at a later date 

However, he's now been told by the IFA that because the transfer deadline has gone, they can’t do any insistent client transfer so although they can provide a transfer certifcate to show that he's received advice he's basically on his own and will have to start all over again

In the meantime, they've presented him with a bill for nearly £5,000

 

 

 

dunstonh

Does anyone know a SIPP provider who will accept an insistent client transfer?

There are no known providers that will accept a transfer if the advice was negative unless it is processed via the IFA agency.

The IFA has recommended not to transfer but he has gone down the insistent client route. Pension is worth about £100k

This shouldnt be an issue then as an insistent client means the IFA is processing it via a provider.      That is unusual nowadays as the majority of PI insurers don't allow it but that is what insistent client means.

My friend says he went down the insistent client route because he believed (wrongly as it turned out) that he would be able to transfer the pension to HL

HL won't process applications via an IFA.   They haven't accepted insistent clients on DB schemes for a long time.

The IFA told him that as a plan B he would be able to transfer it to their own SIPP provider, and then transfer it to  HL at a later date 
However, he's now been told by the IFA that because the transfer deadline has gone, they can’t do any insistent client transfer so although they can provide a transfer certifcate to show that he's received advice he's basically on his own and will have to start all over again

IFAs used to be able to transfer them on an insistent client basis. However, the PI insurer terms change at renewal and most have wont cover the IFA if they do that and that means the IFA cannot do it (or has to have sufficient self funding themselves for the extra liability (which they wont).    So, what was the case years ago is no longer the case.

Starting over is unlikely to change the outcome as CETVs have fallen significantly (almost half the peak values) and its around 9 out of 10 being classed as unsuitable to transfer now.   If he gets another "no" to transferring then he just has another bill to pay.

Albermarle

Bennythedog said:

Thanks for the links. The previous thread was a good read

I have some more info

My friend says he went down the insistent client route because he believed (wrongly as it turned out) that he would be able to transfer the pension to HL

The IFA told him that as a plan B he would be able to transfer it to their own SIPP provider, and then transfer it to  HL at a later date 

However, he's now been told by the IFA that because the transfer deadline has gone, they can’t do any insistent client transfer so although they can provide a transfer certifcate to show that he's received advice he's basically on his own and will have to start all over again

In the meantime, they've presented him with a bill for nearly £5,000

 

 

 

Looks like £5K down the drain unfortunately.

Marcon

dunstonh said:

Does anyone know a SIPP provider who will accept an insistent client transfer?

There are no known providers that will accept a transfer if the advice was negative unless it is processed via the IFA agency.

A stakeholder scheme has to accept it and that doesn't have to be done via an IFA.

Bennythedog

Marcon said:

A stakeholder scheme has to accept it and that doesn't have to be done via an IFA.

Hello

Can you expand on that please? 

Marcon

Albermarle said:

Bennythedog said:

Thanks for the links. The previous thread was a good read

I have some more info

My friend says he went down the insistent client route because he believed (wrongly as it turned out) that he would be able to transfer the pension to HL

The IFA told him that as a plan B he would be able to transfer it to their own SIPP provider, and then transfer it to  HL at a later date 

However, he's now been told by the IFA that because the transfer deadline has gone, they can’t do any insistent client transfer so although they can provide a transfer certifcate to show that he's received advice he's basically on his own and will have to start all over again

In the meantime, they've presented him with a bill for nearly £5,000

 

Looks like £5K down the drain unfortunately.

How and why was the deadline missed, and by whom?

dunstonh

Marcon said:

dunstonh said:

Does anyone know a SIPP provider who will accept an insistent client transfer?

There are no known providers that will accept a transfer if the advice was negative unless it is processed via the IFA agency.

A stakeholder scheme has to accept it and that doesn't have to be done via an IFA.

Name one that is currently open for business?