Fidelity drawdown SIPP transfer advice fee

Oldhand_2

My wife (76) is considering transferring her SIPP which is in drawdown with a wealth management (pause for laughter) firm to a DIY Fidelity SIPP.  She (OK, we) envisages putting all the proceeds (£105K) into the Fidelity Index World Fund or possibly split with a Vanguard LS80/100 fund. Looking at Fidelity's website it says that before transfer 'you MUST speak to one of our retirement specialists' if you are already in drawdown. Now Fidelity offers phone Guidance, which is free, and Advice, which is has a staggering minimum fee of £4000. This would kill the transfer. Does anyone know whether Guidance is sufficient for such a transfer, or Advice? I would hate to see the transfer take place and then £4k suddenly disappear. Anyone done a tranfer to Fidelity whilst in drawdown?

xylophone

Why not just ring Fidelity, explain that the transfer is under consideration and ask whether as far as Fidelity is concerned, advice would be required before the transfer would be accepted.

Albermarle

Oldhand_2 said:

My wife (76) is considering transferring her SIPP which is in drawdown with a wealth management (pause for laughter) firm to a DIY Fidelity SIPP.  She (OK, we) envisages putting all the proceeds (£105K) into the Fidelity Index World Fund or possibly split with a Vanguard LS80/100 fund. Looking at Fidelity's website it says that before transfer 'you MUST speak to one of our retirement specialists' if you are already in drawdown. Now Fidelity offers phone Guidance, which is free, and Advice, which is has a staggering minimum fee of £4000. This would kill the transfer. Does anyone know whether Guidance is sufficient for such a transfer, or Advice? I would hate to see the transfer take place and then £4k suddenly disappear. Anyone done a tranfer to Fidelity whilst in drawdown?

It will only be the free Guidance. Until recently you had to do this to start withdrawing from a Fidelity SIPP.
You would have to sign a contract specifically to engage one of their financial advisors.

AFAIK sorting out the mechanics of a drawdown transfer is just more complicated, and some providers will not accept them at all.

ian16527

They are usually helpful on the phone. I dont think you have to pay for this in your case. I transferred from Fidelity to Vanguard as I use their funds, and it was partially in drawdown. They just create 2 accounts, one uncrystallised and another for drawdown

MoneySavingGerbil

My wife transferrred a SIPP in drawdown from AJ Bell to Fidelity after a 5 minute free chat with them. I can't imagine you'll have any issues. 

gm0

For DC transfers. Free
And Fidelity may pay you to come (cashback offer) as many providers do from time to time; Offsets fees.

They have a paid advice service and offer it for sale.  If you don't want that then "Free guidance only please"
And they do in general "push" the idea of taking advice - as instructed by the FCA conduct of business
As do pensions scheme wake up packs etc. etc.

At pension access - crystallisation - they may insist on a (free) guidance call (which was fine and the individual I got was knowledgeable and helpful for the most part).  Nothing new but friendly and broadly helpful around box ticking

And in that call they may well ask you (as they did me) what you intend to invest in.  Which is frankly none of their business - other than that the FCA also give them a to do list around that due to concerns about the choices made by DIY investors.  The conduct of business is interpreted by providers, new and old, big and small - but what is clear is that they are forced to prove that they perform certain signposting duties at key events and to keep statistics on it.

Some of it makes less sense if you approach it from "why are they doing this for me or what are they selling me".  And only makes sense when you realise you are not the customer driving some of the process.

The idea I guess is that most of us are at most mildly inconvenienced on our way by some confusing extended chatter.  And a few people are spotted and diverted from something bad for them.

I use them - post transfer and initial access - entirely self serve online so far.  No problems.