Pension Transfer / Safeguarding Guidance

Raggy1981

Hi folks

I understand pension transfer legislation has changed recently to protect some people from scams and really bad advice. 

I've been informed that I can't transfer my pension until I've had an appointment Moneyhelper who will talk through the charges, how it will be invested etc.   

This is frustrating as I'm an experienced investor, moved funds to cash in anticipation of the transfer, and the next date of the meeting isn't until 18th December! 

In the past I know you could sign a waiver to state you didn't need guidance from Moneyhelper but it appears they make this mandatory now.  

Am I stuck in this situation until then?  It's not the end of the day but I can imagine due to the time scales that it doesn't really get moving until January. 

Thanks. 

Marcon

Raggy1981 said:

Hi folks

I understand pension transfer legislation has changed recently to protect some people from scams and really bad advice. 

I've been informed that I can't transfer my pension until I've had an appointment Moneyhelper who will talk through the charges, how it will be invested etc.   

This is frustrating as I'm an experienced investor, moved funds to cash in anticipation of the transfer, and the next date of the meeting isn't until 18th December! 

In the past I know you could sign a waiver to state you didn't need guidance from Moneyhelper but it appears they make this mandatory now.  

Am I stuck in this situation until then?  It's not the end of the day but I can imagine due to the time scales that it doesn't really get moving until January. 

Thanks. 

It isn't mandatory unless your transfer triggers an 'amber' flag - and clearly yours does. So I"m afraid you have to wait - and hope there's a cancellation before 18 December!

artyboy

Marcon said:

Raggy1981 said:

Hi folks

I understand pension transfer legislation has changed recently to protect some people from scams and really bad advice. 

I've been informed that I can't transfer my pension until I've had an appointment Moneyhelper who will talk through the charges, how it will be invested etc.   

This is frustrating as I'm an experienced investor, moved funds to cash in anticipation of the transfer, and the next date of the meeting isn't until 18th December! 

In the past I know you could sign a waiver to state you didn't need guidance from Moneyhelper but it appears they make this mandatory now.  

Am I stuck in this situation until then?  It's not the end of the day but I can imagine due to the time scales that it doesn't really get moving until January. 

Thanks. 

It isn't mandatory unless your transfer triggers an 'amber' flag - and clearly yours does. So I"m afraid you have to wait - and hope there's a cancellation before 18 December!

Has that in itself changed recently? When I was getting Amber flags on my old WTW administered works pensions, they did strongly advise a MH appointment, but ultimately didn't insist upon it.

If it is now mandatory across the board, that will please Mrs Arty as she is bound to get caught out here... and given the whole overzealous triggering of amber flags because of 'overseas investments', that really does seem like nanny state nonsense...

MallyGirl

It isn't across the board- I recently transferred a bit from II to HL and just answered that I hadn't had a moneyhelper call and didn't want/need one.

Marcon

MallyGirl said:

It isn't across the board- I recently transferred a bit from II to HL and just answered that I hadn't had a moneyhelper call and didn't want/need one.

That suggests you didn't trigger an amber flag, and your provider simply 'suggested' a Moneyhelper appointment.

See https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-transfers-consolidation/pension-transfer-stopped-or-delayed

dunstonh

In the past I know you could sign a waiver to state you didn't need guidance from Moneyhelper but it appears they make this mandatory now.  

There hasn't been a waiver.

Am I stuck in this situation until then?  It's not the end of the day but I can imagine due to the time scales that it doesn't really get moving until January. 

Yes you are.

You haven't stated what amber/red flags were raised.   Some of which can be avoided through your choice of scheme or investments.

For example:
1 - if the receiving scheme is niche and not on the ceding scheme's green list.
2 - if you have selected overseas domiciled investments or the receiving scheme offers them.
3 - If you have been argumentative, disingenuous or failed to give coherent answers to questions asked.
4 - you are taking advantage of a cashback deal/incentive.

Has that in itself changed recently? When I was getting Amber flags on my old WTW administered works pensions, they did strongly advise a MH appointment, but ultimately didn't insist upon it.

No.  There have been no recent changes.     Amber flags allow discretion by the ceding scheme.   Red flags do not.

Despite having "overseas investments" in most of the portfolios I recommend, I have only had two insist on a MoneyHelper review.   One was L&G, which has a very small green list, and the other was XPS, which appears to have no green list and doesn't use any discretion. 

Raggy1981

Thanks all. 

It's a QROPS transfer however my investment will be in a UK FCA Quilter investment. When I scanned Regulation 9.6 of the S125 regulations it seemed that it was overseas investments not pensions that were an issue but maybe the trustees of the scheme just bang these all together.  

Seems mad if I was still an adviser that I would have to seek third party guidance to cover their !!!!!!. 

dunstonh

It's a QROPS transfer

It may have been a good idea to lead with that as QROPS makes all previous comments irrelevant.

Seems mad if I was still an adviser that I would have to seek third party guidance to cover their !!!!!!. 

It is not to cover the adviser.   It is to cover the consumer from those pretending to be an adviser or using niche schemes (SSAS for example).

Marcon

artyboy said:

If it is now mandatory across the board, that will please Mrs Arty as she is bound to get caught out here... and given the whole overzealous triggering of amber flags because of 'overseas investments', that really does seem like nanny state nonsense...

Probably not to those who've been scammed, and who respond by loudly declaring that they 'should have had better protection'.

People who complain are invariably those you haven't - yet - been scammed.

sandsy

Where s the QROPS pension domiciled? Are you in the same country or planning to move there?