Transfer Advice Complaint - Do I have a leg to stand on here?

michael1234

fuzzzzy said:

I agree we have not seen any evidence. I am not necessarily defending the OP (especially having read a bit more of the original thread about the actual transfer), but just making a general point that it does all come down to the risk warnings given.

I would like to think in the case of someone wanting to transfer this type of hybrid pension to a DC pension that clear indication would be giving at the outset of how the transfer process works in these situations and the possible risk of loss in transferring at a time of market volatility. I would expect this advice should be given early on before any paid advice.

Yes I agree.

Having been forced to pay £10,000 to an IFA was the real cheek. Reading this thread has told me they clearly did not do their job properly which makes it worse. Yes they did the transfer, yes I probably would have proceeded anyway with that specific warning but I would have sold my investments in my own time prior to transfer and generally be better prepared.

The pension was a hybrid meaning a DC pension with a worthless guarantee (actually a guarantee that I need to pay 10K a colleague of one of the FAs on here). I see no reason why (to use the jargon) an in-specie transfer could not have been requested.

Thanks to the two IFAs who:
1/ Gave me his warning that he gives out to his clients.
2/ The other one that was so sure my Advice must have contained it which implies this is a warning that almost all FAs would give out.

Very helpful. 

I'll update my new IFA friends here when I have some news....

xylophone

 but I would have sold my investments in my own time prior to transfer 

Are you sure that the Trustees/Administrators would have been prepared to facilitate this? Have you checked?

See my previous.

dunstonh

Are you sure that the Trustees/Administrators would have been prepared to facilitate this? Have you checked?

If it were a traditional insurance company pension, then there would be no cash account to sell the funds into.  It would have to be in a fund in the available range right up to the point of transfer.

michael1234

I used to occasionally transfer funds from the small number available using their online platform. Now, I can't 100% be certain that there was a cash account since so that's a good point but there was definitely a cash fund and I certainly could have moved my funds into that one prior to transfer.

Notepad_Phil

michael1234 said:

I used to occasionally transfer funds from the small number available using their online platform. Now, I can't 100% be certain that there was a cash account since so that's a good point but there was definitely a cash fund and I certainly could have moved my funds into that one prior to transfer.

So you think you would have been able to outwit the markets by knowing when exactly to time the sale of your funds? In the real world, on average you'd just be in cash for even longer than it was during the transfer, and lose out by a longer time frame during which markets typically rise.

michael1234

Notepad_Phil said:

michael1234 said:

I used to occasionally transfer funds from the small number available using their online platform. Now, I can't 100% be certain that there was a cash account since so that's a good point but there was definitely a cash fund and I certainly could have moved my funds into that one prior to transfer.

So you think you would have been able to outwit the markets by knowing when exactly to time the sale of your funds? In the real world, on average you'd just be in cash for even longer than it was during the transfer, and lose out by a longer time frame during which markets typically rise.

That is of course true but having seen the drop the day before my transfer I might have not proceeded on the grounds of turbulence. In fact I almost certainly wouldn't have done. But that isn't the point, there is a risk in selling up a large portfolio to then buy back potentially months later.

Moreover, there is also a statistical expected loss in doing so given there is a long term expected gain (of around 10% pa I think) which I would be missing out on whilst not in the market.

DeLaSole

Re: your June transparency thread in which you said the funds you held before transfer had your specific ex-company name within them, that you could sell them prior to the transfer and see your number of units held etc. As the thread wasn't updated, your specific concerns raised within that thread about the administration of the sale of funds have since been satisfied? 

DRS1

DeLaSole said:

Re: your June transparency thread in which you said the funds you held before transfer had your specific ex-company name within them, that you could sell them prior to the transfer and see your number of units held etc. As the thread wasn't updated, your specific concerns raised within that thread about the administration of the sale of funds have since been satisfied? 

I think this answers one of the questions I asked at the very start of this thread.  An in specie transfer would not have been possible.

Given that he was dead set on making the transfer his "loss" was unavoidable.

Cus

Based on your information and your opening post, I don't think you have a leg to stand on with a complaint, however I would be happy to read your progress if you proceed.

DeLaSole

DRS1 said:

DeLaSole said:

Re: your June transparency thread in which you said the funds you held before transfer had your specific ex-company name within them, that you could sell them prior to the transfer and see your number of units held etc. As the thread wasn't updated, your specific concerns raised within that thread about the administration of the sale of funds have since been satisfied? 

I think this answers one of the questions I asked at the very start of this thread.  An in specie transfer would not have been possible.

Given that he was dead set on making the transfer his "loss" was unavoidable.

The OP's June concern was whether all units were sold correctly and all cash moved over. Although he said he was probably just sore with getting unlucky, it is nevertheless important and a fair thing to be able to know. Hence I hoped that by now he had been able to satisfy that all was good in that regard.

On the in-specie aspect, in a post in April the sale of the funds, rather than their transfer, seemed to have been expected. And he confirmed (p.3) that it would be untrue to claim he wasn't warned he'd be out of the market. Unless I've missed it, there's been no statements to the effect he was told this was an in-specie transfer (obviously so if it couldn't be one), only the contrary. 

Posts made months before the transfer was processed reflected awareness of being in and out of the market. The 5% gain in the few months to December was obviously a gain he would have missed by being in cash (cash fund), as he has considered, so that was the positive side. The drops before sale was the negative side. 

Although it's also been a negative to have missed out on returns once he had the cash to invest, a positive is that he was helped to avoid SJP. That"s 5 figures (?) off the bat and he's avoided being locked in for years at high fees.