Can financial advisor move my pension?

beesmax · 8 December 2018 at 2:28PM

My financial advisor asked me to sign a client letter of authority to transfer the agency of my pension contract, get ongoing trail or renewal commission or feel and provide the company with any information. When I asked what exactly this letter of authority gives him, he said that it gives him the ability to get information from the pension companies, and nothing more.
He then did some research and recommended me to move all my funds onto a new platform. I told him I would think about it. In the process of me thinking about it, he informed me that he had created the platform and initiated the transfer of my pensions (without my explicit agreement).
I also found out that he gets 0.50% monthly as an advisor fee on this new platform. He never mentioned this. He only sold the benefits of moving to this new platform.
I have lost trust in this guy. But how can he just move my money without me approving and signing authorisation? I didn't think we could open any accounts without a passport, bank account, id, etc....? Can he actually do this?

Pension_Geek · 8 December 2018 at 2:35PM

Have you had any confirmation from your existing pension providers to say that they have transferred them? They would typically write to you when it's done. You can, if you wish, call your providers and tell them to put the transfer on hold.

Letters of authority are wither for information only, or a full transfer of servicing rights. The requirements for different companies to start or transfer adviser fees is different for each company. It sounds like he has transferred the servicing of the pensions to his own agency. You can, if you wish, revoke this.

In terms of what he can do, he should provide a full suitability report for his proposal, and this should include any fees that need to be paid.

AnotherJoe · 8 December 2018 at 3:19PM

And also a new FA as well !

Pension_Geek · 8 December 2018 at 3:30PM

nfifield wrote: »

Thanks for confirming, as I had expected, that he couldn't just transfer my money through the use of a letter of authority alone. Surely he can't transfer my accounts to his agency without my approval? I think you could be right. He also tried to put me under pressure and hold me to ransom by saying that the fee of 0.5 that will be charged on the consolidated funds avoids me from having to pay out a huge cost of the advice he provided. He voluntarily kept offering advice without my explicit request. In fact I had to correct him several times on some of the incorrect advice he gave me. I've written to one pension provider to ask them to revert my pension (there's a 14 day thinking period). They have already written to confirm the creation of the account and the transfer of my funds. I have told my advisor he had no right to transfer my funds without any form of formal agreement. Apparently when he told me about his proposal over the phone and I said it "sounds great", to him that meant I had approved the transfer. Although he must have ignored me saying clearly that I need to look into it and will get back to him.
I feel that I should seek further advice and possibly compensation through the FCA.

The letter you signed, if it was for transferring of servicing rights, gave the companies your approval. Transfers are slightly different, but as the request comes from the receiving scheme and it can be done online, the adviser doesn't need to speak to them (of course, they should as part of their fact find prior to advice being given). I know that some providers want a client signed declaration for new business to be processed, but I can't speak for every provider.

beesmax · 8 December 2018 at 3:59PM

Thanks - so basically the advisor can do whatever he wants with my money because I've signed my rights away? Even if he doesn't consult with me. What is most upsetting is that he didn't explain this to me. The only bit he ever mentioned was that the letter of authority would allow him to get information he needed for his research which I'm paying for.

Pension_Geek · 8 December 2018 at 4:16PM

beesmax wrote: »

Thanks - so basically the advisor can do whatever he wants with my money because I've signed my rights away? Even if he doesn't consult with me. What is most upsetting is that he didn't explain this to me. The only bit he ever mentioned was that the letter of authority would allow him to get information he needed for his research which I'm paying for.

Let's not panic here! You have plenty of rights, and all you have signed is a transfer of servicing rights. You need to send a written confirmation to the adviser that you no longer wish to proceed, and that you do not want to pay any money for the transfer. If you speak to the new provider (assuming you have a policy number) they can and will put the transfers on hold, even if you have signed a declaration.

Brynsam · 8 December 2018 at 4:18PM

Write to your FA and set out your concerns and ask him to explain himself, in writing. It could be that you have misunderstood what you've signed, which sounds likely - but did the signature page have some sort of declaration that you have 'read and understood' the terms, in which case you may be on a sticky wicket proving otherwise. Alternatively, you and he may be using the word 'initiated' in a wholly different sense and all he's done is what you expected: found out the facts as a prelude to a possible transfer. Nobody here can know which it is, so contacting him is your next port of call.

beesmax · 8 December 2018 at 4:52PM

To recap:
After my IFA sent me his recommendations to consolidate my funds, I replied that I would first review and come back to him with questions. I had started to pen an email to him with a set of questions over the course of the week when I received an email from him confirming that he had initiated the transfer of my pension funds.
I also started receiving letters and emails from the new pension provider, as well as from the original companies which I had pensions with, informing me about the transfers. The transfer has now been completed.
I was very upset and spoke to the IFA complaining that we had agreed that I would review the situation before anything was done. He told me that he had assumed he could go ahead. He had no confirmation whatsoever in writing or verbally.
I then told him I that wanted to put the transfer on hold until I was satisfied it was the right thing to do. I also mentioned that I would pay for the advice but I didn't want him to manage my money - I prefer to be in control of managing my own finances.
At that point he stated that he had put a lot of time into work he's done for me for several months and that I would essentially have to pay a hefty bill for that.
Well as you can imagine, I feel that this has been handled in an underhanded manner and that l've been missold intend. I feel stuck in a situation where I owe him for the time he claims he has spent on this (NOTE I am also going to be billed for the research he has done AND the transfer of the money). Plus he will take the 0.5% monthly fee. And yet I am not happy with this arrangement. It is not the outcome I wanted.

Pension_Geek · 8 December 2018 at 5:05PM

beesmax wrote: »

To recap:
After my IFA sent me his recommendations to consolidate my funds, I replied that I would first review and come back to him with questions. I had started to pen an email to him with a set of questions over the course of the week when I received an email from him confirming that he had initiated the transfer of my pension funds.
I also started receiving letters and emails from the new pension provider, as well as from the original companies which I had pensions with, informing me about the transfers. The transfer has now been completed.
I was very upset and spoke to the IFA complaining that we had agreed that I would review the situation before anything was done. He told me that he had assumed he could go ahead. He had no confirmation whatsoever in writing or verbally.
I then told him I that wanted to put the transfer on hold until I was satisfied it was the right thing to do. I also mentioned that I would pay for the advice but I didn't want him to manage my money - I prefer to be in control of managing my own finances.
At that point he stated that he had put a lot of time into work he's done for me for several months and that I would essentially have to pay a hefty bill for that.
Well as you can imagine, I feel that this has been handled in an underhanded manner and that l've been missold intend. I feel stuck in a situation where I owe him for the time he claims he has spent on this (NOTE I am also going to be billed for the research he has done AND the transfer of the money). Plus he will take the 0.5% monthly fee. And yet I am not happy with this arrangement. It is not the outcome I wanted.

Has an initial advice fee been taken from the transfer? The new company can confirm that. What did you agree to pay him? Was it contingent on the transfer going ahead or a cash fee? If its a cash fee, and you have agreed then I can't see why you think you shouldn't have to pay him, even if you don't go ahead, as he correctly says, he has done a good bit of work on it. If its based on the transfer going ahead, and it doesn't, it's his loss.

beesmax · 8 December 2018 at 5:44PM

He has a charge for research and advice done by his firm, as well as a set percentage for all funds that he transfers. Those are his terms which I agreed to and am happy with as an ongoing part of the contract. So far he hasn't billed me but I'm expecting that once the transfer is complete, I'll be getting the bill. The problem is not that I don't want to pay him.
The issue is that I did not agree with the transfer of my money but he went ahead regardless. I'm now in a situation where I'm not happy with the transaction. I am quite happy to pay him for the research and recommendations he made as agreed but not with the fact that he just moved my money without my decision.

Linton · 8 December 2018 at 5:50PM

I am a little surprised at your statement that the adviser (FA or IFA?) gets 0.5% annually (0.5% monthly is 6%/year!) from the platform. The highest total DIY platform charge is HL at 0.45% so presumably you are claiming that the platform is charging you significantly more than this in total.

Can financial advisor move my pension?

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