IFA and Pension fund management charges - transferring a DC workplace & private pension

xylophone

As long as II use Origo, then you should be fine and not be concerned over a delay.

Perhaps dunstonh will comment on the link.

dunstonh

xylophone said:

This caught my eye........it appears that Origo may not be the cause of any delay.........


https://moneyforums.citywire.com/yaf_postst17015_LandG-blocking-transfer-to-ii-SIPP.aspx

Nothing to do with origo.       its to do with II's response to L&G and then L&G taking a decision on the next steps.  Hover, origo to origo usually means the providers view it as lower risk when they are willing to use their discretion.

L&G to Aviva or Std Life, for example, wouldn't bat an eyelid, even if they are SIPPs.  II is a small player and its possible they haven't made L&G's whitelist.   

II operate a SIPP which allows overseas domiciled investments.   So, a flag is raised for that.   Technically all SIPPs (proper SIPPs not pretend marketed SIPPs) allow overseas domiciled investments.   So, they all have that flag raised.    

The OP in that thread is not only using a scheme that allows overseas domiciled investments but they are also utilising them.     That's a secondary bit of info that works against them. 

The ceding scheme then has choices.  a) do they transfer the money b) do they ask more questions.     If its going to mainstream providers then its likely it would be transferred.  If not, then more questions as asked.      If after asking those questions, there is unresolved information or concerns or the ceding scheme administrator is being pig headed/lazy (some professional administrators for example) then they say you need a moneyhelper phone call.

In the case of that thread, it appears the flags were correct and L&G were not willing to apply discretion based on the information they had and referred it to moneyhelper.

It should be noted that even if you are not using ETFs, it is whether the pension itself offers overseas domiciled investments.

I have transferred several L&G workplace pensions to platform SIPPs over the last year and only taken a week with no phone call/questionnaire or referral to moneyhelper.    However, I was using mainstream brands

DeadlyD

dunstonh said:

xylophone said:

This caught my eye........it appears that Origo may not be the cause of any delay.........


https://moneyforums.citywire.com/yaf_postst17015_LandG-blocking-transfer-to-ii-SIPP.aspx

Nothing to do with origo.       its to do with II's response to L&G and then L&G taking a decision on the next steps.  Hover, origo to origo usually means the providers view it as lower risk when they are willing to use their discretion.

L&G to Aviva or Std Life, for example, wouldn't bat an eyelid, even if they are SIPPs.  II is a small player and its possible they haven't made L&G's whitelist.   

II operate a SIPP which allows overseas domiciled investments.   So, a flag is raised for that.   Technically all SIPPs (proper SIPPs not pretend marketed SIPPs) allow overseas domiciled investments.   So, they all have that flag raised.    

The OP in that thread is not only using a scheme that allows overseas domiciled investments but they are also utilising them.     That's a secondary bit of info that works against them. 

The ceding scheme then has choices.  a) do they transfer the money b) do they ask more questions.     If its going to mainstream providers then its likely it would be transferred.  If not, then more questions as asked.      If after asking those questions, there is unresolved information or concerns or the ceding scheme administrator is being pig headed/lazy (some professional administrators for example) then they say you need a moneyhelper phone call.

In the case of that thread, it appears the flags were correct and L&G were not willing to apply discretion based on the information they had and referred it to moneyhelper.

It should be noted that even if you are not using ETFs, it is whether the pension itself offers overseas domiciled investments.

I have transferred several L&G workplace pensions to platform SIPPs over the last year and only taken a week with no phone call/questionnaire or referral to moneyhelper.    However, I was using mainstream brands

Thanks both, 
On that basis what SIPP provider would you recommend @dunstonh as a novice I want an easy accessible platform that is intuitive and provides funds that are "packaged" and one that I can use the UFPLS option.

Albermarle

 II is a small player and its possible they haven't made L&G's whitelist.   

They may not be in the same league as Aviva etc but they claim 400,000 customers and AUM of £50 Billion.

In terms of a retail SIPP provider they are not small, but as they do not operate any workplace pensions ( I think) then I suppose they will be quite small with 'only' £50 Billion.

DeadlyD

And @Albermarle @xylophone @dunstonh in your opinions, given what you know on this thread, what SIPP would you transfer to? I want something easy for a novice with good access for UFPLS tnx and recommended options for funds. I only looked at II as it got a good rating and was mentioned here so have no preference and it doesn't have to have the lowest charges.

Albermarle

DeadlyD said:

And @Albermarle @xylophone @dunstonh in your opinions, given what you know on this thread, what SIPP would you transfer to? I want something easy for a novice with good access for UFPLS tnx and recommended options for funds. I only looked at II as it got a good rating and was mentioned here so have no preference and it doesn't have to have the lowest charges.

In terms of service there is probably not a lot to choose between the main players, so if II's charges work for you then just go ahead. I think as mentioned already the investments you pick are much more important than who the pension provider is.

xylophone

in your opinions, given what you know on this thread, what SIPP would you transfer to? I want something easy for a novice with good access for UFPLS tnx and recommended options for funds.

A number of posts ago, dunstonh commented

Nothing to be afraid of with SIPPs.   Just because they can hold over 30,000 investment options, doesn't mean you need to hold over 30,000 of them.  Keep it simple with a low cost multi-asset fund and you achieve your goal.    That is usually better than most robo options which do only have around 5 funds.

xylophone

In terms of providers, you do have a wide choice.

Among those most often mentioned on the forums would be Hargreaves Lansdown, Fidelity, AJ Bell and II,



All offer UFPLS and a wide choice of funds.

https://www.hl.co.uk/retirement/ufpls

https://www.fidelity.co.uk/retirement/your-retirement-options/

https://www.ajbell.co.uk/faq/what-uncrystallised-funds-pension-lump-sum-ufpls

https://www.ii.co.uk/ii-accounts/sipp/ufpls

The choice is yours.

I would imagine that all the above use Origo for transfer.

It is just a question of whether or not L&G would prove awkward.

You could always book a telephone appointment with Pension Wise (Money Helper) if you thought it would comfort L&G?

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise/book-a-free-pension-wise-appointment/book-a-phone-appointment

That done,  and given Origo, you could see the transfer done and dusted before the New Year?

Multi Asset Funds

https://monevator.com/passive-fund-of-funds-the-rivals/

I would be surprised if any of the above would give L&G the willies?

DeadlyD

It appears wise to withdraw my UFPLS from a new platform then as long it’s  a main player and Origo to Origo 
I do like this monevator site - good reading from some financial journalists with a sense of humour 

dunstonh

DeadlyD said:

It appears wise to withdraw my UFPLS from a new platform then as long it’s  a main player and Origo to Origo 
I do like this monevator site - good reading from some financial journalists with a sense of humour 

Just be wary of their Vanguard bias.  You could understand that 12 years ago when Vanguard came in and disturbed the market but there is no excuse for it now.

Even in July 2022 they were saying (last update of that link):



The problem is that it has not had the best long term returns and it is not the lowest cost and many people argue about its asset allocation.   Of course, asset allocation is down to opinion and its a management decision how you split the regions/countries and assets.  So, you are always going to get different opinions there. 

But if its not the lowest cost, not had the best long term returns, not been the most consistent how can you call it the clear leader?  - you can if you pray at the church of Vanguard.

I like Vanguard. I have several of their trackers in my portfolio but no single fund house has the best options in every area.     Vanguard, as a brand, has become a bit like SJP, apple and other brands that have followers that are so devout they cannot find it in themselves to believe that alternatives can be as good or better.     Monevator appears to be a devout follower like that.

That article effectively criticises all the multi-asset funds with variable allocations and claims the VLS range is static and its that rigidity that makes it best.   The problem is that going with a static asset allocation is also an active decision.  Going with home bias is an active decision.  Not including a range of sectors is an active decision.     Whilst VLS has a static equity/bond ratio, it has changed the underlying funds and percentages over time.   Less frequently than HSBC, for example, but they have moved.

So, whilst the site can be useful, just keep in mind that they do have some bias in their outcomes.