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It is about time they changed the law, requiring a FA to deal with transferring away a DB Scheme

greyscot
Posts: 2 Newbie

In certain circumstances, as my own, below, it is about time they
changed the law on requiring a FA to transfer out a DB scheme. It is
scandalous what a FA will charge, for, basically, what is just a form
filling exercise. I am looking to transfer my DB scheme to purchase a
Lifetime Annuity. An Annuity with Standard Life, for example, will give
me over £3,000 more, annually, than what the current DB scheme is
offering. This is due to the DB scheme being for dual life and RPI
linked. This combination, significantly, reduces the annual amount you
receive, compared to a Lifetime, Single Life, Enhanced Annuity with
Value Protection. This is based on Cash Equivalent Transfer value
(CETV), I have just received from my DB provider. The benefit for
purchasing an Annuity can't be any simpler, as the above demonstrates. I
am not about to do anything mad. I am simply changing one pension for
another, that very, obviously, will be in my best interests. By the
way, I am an ex Accountant, so don't really need any advice from a FA
and I am quite confident in my own sums. If there are any FAs reading
this, I am inviting you to justify why you feel you have to charge so
much, especially, how many actual hours will be spent on a transfer. In
my case, there is no risk. I am giving a specific instruction, so the
excuse of requiring a high fee to match the long term risk, does not cut
it with me, unfortunately. What's that saying about "having someone
over a barrell"!!!
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Comments
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greyscot said:In certain circumstances, as my own, below, it is about time they changed the law on requiring a FA to transfer out a DB scheme. It is scandalous what a FA will charge, for, basically, what is just a form filling exercise. I am looking to transfer my DB scheme to purchase a Lifetime Annuity. An Annuity with Standard Life, for example, will give me over £3,000 more, annually, than what the current DB scheme is offering. This is due to the DB scheme being for dual life and RPI linked. This combination, significantly, reduces the annual amount you receive, compared to a Lifetime, Single Life, Enhanced Annuity with Value Protection. This is based on Cash Equivalent Transfer value (CETV), I have just received from my DB provider. The benefit for purchasing an Annuity can't be any simpler, as the above demonstrates. I am not about to do anything mad. I am simply changing one pension for another, that very, obviously, will be in my best interests. By the way, I am an ex Accountant, so don't really need any advice from a FA and I am quite confident in my own sums. If there are any FAs reading this, I am inviting you to justify why you feel you have to charge so much, especially, how many actual hours will be spent on a transfer. In my case, there is no risk. I am giving a specific instruction, so the excuse of requiring a high fee to match the long term risk, does not cut it with me, unfortunately. What's that saying about "having someone over a barrell"!!!
Look no further than @HappyHarry's post of 13 August 2025: https://forums.moneysavingexpert.com/discussion/6623518/transfer-advice-complaint-do-i-have-a-leg-to-stand-on-here/p1 (and note the 74 likes).
If you read that and follow the links, you'll see why nobody else needs to add anything to this thread to answer your question.Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
You have my sympathies and most of my support.
I have a DC work scheme that has an underlying guarantee and cannot get an IFA of any sort to help me with it as they say it is in fact a DB scheme due to the guarantee and therefore cannot be transferred. The problem is that the scheme administrators do not have and never had any way to payout as a DB. So the only options are to transfer it to another DC scheme of some sort or to an annuity.
As someone who actually worked as a few years as an administrator for this same scheme I'm really rather frustrated by it all.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
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"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
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The regulations mandate the FA/IFA to perform a due diligence process which is a lot of work, so it costs a lot of money. Further - the insurance for IFA who provides this service is very high. They are not allowed to just sign it off on the basis of you insisting that you want to go ahead.
For sure there can be some fairly rare edge cases where it's a more clear cut case that it's the right thing to do, but even in the case described above, there could still be some risk because it could take several months to do the transfer and there is no guarantee that annuity rates will not change a lot during that time.
Also - the RPI linking and dual life aspect could be debatable as you might decide in 10 years from now that you wanted them after all. I suspect a big chunk of the higher quote is due to the lack of RPI linking?
Also your mention of enhanced annuity means you have health conditions that will give a significantly reduced life expectancy? In that case they might also look at whether buying an annuity is the right thing to do at all, so the IFA could end up saying yes you should cash in the DB pension but you should not buy a lifetime annuity (or not with the full amount but only part of it or suchlike).0 -
greyscot said:In certain circumstances, as my own, below, it is about time they changed the law on requiring a FA to transfer out a DB scheme. It is scandalous what a FA will charge, for, basically, what is just a form filling exercise. I am looking to transfer my DB scheme to purchase a Lifetime Annuity. An Annuity with Standard Life, for example, will give me over £3,000 more, annually, than what the current DB scheme is offering. This is due to the DB scheme being for dual life and RPI linked. This combination, significantly, reduces the annual amount you receive, compared to a Lifetime, Single Life, Enhanced Annuity with Value Protection. This is based on Cash Equivalent Transfer value (CETV), I have just received from my DB provider. The benefit for purchasing an Annuity can't be any simpler, as the above demonstrates. I am not about to do anything mad. I am simply changing one pension for another, that very, obviously, will be in my best interests. By the way, I am an ex Accountant, so don't really need any advice from a FA and I am quite confident in my own sums. If there are any FAs reading this, I am inviting you to justify why you feel you have to charge so much, especially, how many actual hours will be spent on a transfer. In my case, there is no risk. I am giving a specific instruction, so the excuse of requiring a high fee to match the long term risk, does not cut it with me, unfortunately. What's that saying about "having someone over a barrell"!!!
Maybe start by reading the FCA guidelines on what is expected of the adviser in a DB transfer situation, and then, as an exAccountant, you will have a better understanding of what is involved and why the cost is as it is. I imagine in your previous role you would have had to read through similar such guidance, and whilst not easily digested by most, with your background you should be able to grasp the key concepts : FG21/3: Advising on pension transfers
Also worth looking at the thread linked to by @Marcon above, which was another poster who also said they would never consider complaining about any DB transfer advice they received, and then, shortly after the transfer was completed, changed their mind and sought comments from this board about how best to complain.
I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.0 -
This is why we cannot have nice things. Spivs and rogues.We have these rules for a reason. A good one. It inconveniences a few. It protects other people from being ripped off as already happened before. Not a theoretical harm. A lot of financially naive folk were trampled by spivs
So no. Lifetime insured liability for advice given and a narrow pathway. Is about right. Just short of banning the practice entirely.
It pads advice costs. But here we are.0 -
It is scandalous what a FA will charge, for, basically, what is just a form filling exercise.Seeing as my accountant charges more than my fee cap, perhaps you, as an ex-accountant, can explain how you can justify an accountant's fees for doing what is just a form-filling exercise, as you put it.
<snip?
If there are any FAs reading this, I am inviting you to justify why you feel you have to charge so much, especially, how many actual hours will be spent on a transfer.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1
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