Pension Advisor would want £21,000 for a failed transfer

michael1234

woolly_wombat said:

xylophone said:

Has anybody at Grove or Mercer  (or indeed does the scheme guide) come up with  precise answers regarding what you can expect if you do not transfer?

See

https://forums.moneysavingexpert.com/discussion/comment/81062190/#Comment_81062190

I may have missed it but I do not see any real clarification.

You have the patience of a saint xylophone.

Hi. If I've done something wrong or behaved badly in some way could you let me know so I don't do it again ?

michael1234

xylophone said:

You just have to accept that you will not be permitted to transfer out without full (not abridged) advice from a PTS  and that the 

cost will be several thousand pounds.

I do accept it fully. Them's the rules. If I implied in some way that I don't accept it then I was wrong and didn't mean to imply that.

michael1234

So today I've been asked if I can undergo psychometric testing...

All this I presume because there are some folk out there who if they lose money want to blame their IFA for bad advice and get reimbursed. I suspect there are lots of threads on this topic but my gut feeling says that the buck should stop with the individual - he/she can pay for advice but the final decision should be with the person receiving the advise and not the advisor. That is the opposite of how it works now of course.

dunstonh

All this I presume because there are some folk out there who if they lose money want to blame their IFA for bad advice and get reimbursed

There are a lot of people who did a DB transfer by choice and have then gone on to complain and try (and sometimes succeed) in getting redress.

but my gut feeling says that the buck should stop with the individual

Every year that goes by, personal responsibility gets less and less.
Just take the recent motor finance issue.    The court has effectively said that signing something to say you have read and understood it no longer means anything.

Pat38493

michael1234 said:

So today I've been asked if I can undergo psychometric testing...

All this I presume because there are some folk out there who if they lose money want to blame their IFA for bad advice and get reimbursed. I suspect there are lots of threads on this topic but my gut feeling says that the buck should stop with the individual - he/she can pay for advice but the final decision should be with the person receiving the advise and not the advisor. That is the opposite of how it works now of course.

Hmmm - if you were asked that by an IFA, it's probably more to assess your attitude to risk?  

michael1234

Finally got the advice and assistance to move my pension at long last !

One final hurdle is a possible mandatory "pension safeguarding" call with MoneyHelper. The slightest hint that there is some incentive or cashback or anything of that nature and that's it £10,000+ down the drain. Perhaps they'll ask if I've discussed my pension arrangements with anyone else. What about my wife - is that allowed or could that be considered influence?

And then what about the funds themselves. What if I wanted to take 25% and buy a buy2let abroad. "Far too risky" they might say and take £10,000 off me "for my own good".

 I wonder how else they'll try and catch me out. Oh no, they won't do that....they're here to help me....

dunstonh

One final hurdle is a possible mandatory "pension safeguarding" call with MoneyHelper. The slightest hint that there is some incentive or cashback or anything of that nature and that's it £10,000+ down the drain. Perhaps they'll ask if I've discussed my pension arrangements with anyone else. What about my wife - is that allowed or could that be considered influence?

Moneyhelper cannot block the process.  One point of view is that they are there to protect you the consumer.  Another point of view is that it helps protect the providers from you making a retrospective complaint if you do go ahead with a scam.

michael1234

So in theory looks like it is going ahead.

However, the IFA have sent me a warning letter that my transfer could take up to a further 3 months due to the existing pension putting requests to transfer out into a queue prior to processing it. My understanding is that the advice to transfer is only valid whilst the CETV is valid.

So the existing pension company issue a CETV that last for 3 months but then take 3 months actually effecting the transfer. If another CETV is needed, another payment has to be made. And if the new CETV is lower, then potentially new advice has to be issued costing a further 10K?

I'm sure I've got this all wrong but at this point it feels like the FCA (or whoever regulate pensions) have set up a system to allow everyone to profit handsomely whilst the folk whose cash it is, wait on the edge of their seats for months on end.

Marcon

michael1234 said:

So in theory looks like it is going ahead.

However, the IFA have sent me a warning letter that my transfer could take up to a further 3 months due to the existing pension putting requests to transfer out into a queue prior to processing it. My understanding is that the advice to transfer is only valid whilst the CETV is valid.

So the existing pension company issue a CETV that last for 3 months but then take 3 months actually effecting the transfer. If another CETV is needed, another payment has to be made. And if the new CETV is lower, then potentially new advice has to be issued costing a further 10K?

I'm sure I've got this all wrong but at this point it feels like the FCA (or whoever regulate pensions) have set up a system to allow everyone to profit handsomely whilst the folk whose cash it is, wait on the edge of their seats for months on end.

You have 3 months from the date the CETV was calculated in which to accept the transfer/provide details of the receiving scheme etc - you need to do that while the CETV is still within the guarantee period.

The DB scheme then has a further 3 months in which to actually make the payment - they will need to carry out various checks, such as getting confirmation that you have received advice from an appropriately authorised and regulated individual, check that the scheme to which you want to transfer isn't waving a load of red flags etc.

eddiedog

Hi Michael1234
ive been reading your thread with interest as I would also like to transfer my DB pension. I went ahead and got my CETV which was only 12 times the value so I’m going to hang on for better rates but I’d love to know how you did it from start to end if you wouldn’t mind doing a bit of a summary when you’re done please.  

I hope it all works out well for you.