Possible Transfer Value and Advice

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  • eskbanker
    eskbanker Posts: 31,076 Forumite
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    cfw1994 wrote: »
    Interesting, thanks.

    Not entirely clear how "the client now has illiquid investments and is unable to take benefits from his pension, but the investments cannot be sold or exchanged for a cash sum without incurring a substantial financial loss"
    Pre-dated the pensions freedoms changes.....& the company was unable to contest the findings.

    A curious clash between the regulator and the ombudsman.
    I am astonished the Ombudsman made their decision reading that. Although clearly we cannot see all the detail there.
    The (relatively) detailed info and decision is published at https://www.financial-ombudsman.org.uk/files/219803/DRN9316495.pdf
  • MarkCarnage
    MarkCarnage Posts: 628 Forumite
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    The (relatively) detailed info and decision is published at https://www.financial-ombudsman.org.uk/files/219803/DRN9316495.pdf

    Not the only one going against this adviser on an 'insistent client' basis either, and if you read the detail of both you can perhaps understand why.....I'm not sure that these would be typical cases for the type of circumstances alluded to above in comments.
  • Albermarle
    Albermarle Posts: 22,179 Forumite
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    So it really sounds like I need to have the destination SIPP set up first,
    Not sure if you aware but the actual setting up of a SIPP on the internet only takes about 5 or 10 minutes.

    Also regarding the various points about what happens if there is a negative recommendation .
    You probably will not have much trouble with the current DB scheme, as they are desperate to get you off their books as a financial liability - hence the apparently generous offer .
  • Dox
    Dox Posts: 3,116 Forumite
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    PlanToRetire wrote: »
    Ah I see. So much (great) info - I am going to take all day Sunday to go over my options and decide my course of action.

    Have a listen to this edition of Radio 4's MoneyBox, starting 17 minutes 30 seconds in: https://www.bbc.co.uk/sounds/play/b09vwzg4

    It covers the following, which is relevant to your question:
    'Under Financial Conduct Authority rules, if you want to transfer a defined benefits pension of more than £30,000, you must seek guidance first. It's a safeguard against you making potentially disastrous financial decisions - but not an absolute block. That's because under pension freedom, it's your money and your decision. But one Money Box listener who received advice, but chose a different option, found it impossible to get her confirmation letter - which meant her pension transfer couldn't go ahead. Michelle Cracknell, chief executive of the Pensions Advisory Service explains your rights.'
  • PlanToRetire
    PlanToRetire Posts: 17 Forumite
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    Dox wrote: »
    Have a listen to this edition of Radio 4's MoneyBox, starting 17 minutes 30 seconds in:

    It covers the following, which is relevant to your question:
    'Under Financial Conduct Authority rules, if you want to transfer a defined benefits pension of more than £30,000, you must seek guidance first. It's a safeguard against you making potentially disastrous financial decisions - but not an absolute block. That's because under pension freedom, it's your money and your decision. But one Money Box listener who received advice, but chose a different option, found it impossible to get her confirmation letter - which meant her pension transfer couldn't go ahead. Michelle Cracknell, chief executive of the Pensions Advisory Service explains your rights.'

    That's really helpful.
    Many thanks
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    edited 17 January 2020 at 12:42AM
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    “I suspect all it will take is a significant market crash, nothing out of the ordinary, just similar to those seen in the past and we will move into "PPI" territory.

    At which point people like the op (no offence intended) will start to plead they were misled. Hopefully there will be sufficient audit trail nowadays to show they were going against the professional advice to stay put.
    Originally posted by Dazed and confused

    I cannot understand how that (bold) would possibly be the case. Well, I can imagine them grumbling......
    ....but if a company advised to NOT transfer out, and they did - there is a clear line to the advice that keeps the company entirely in the clear. Nothing like PPI whatsoever, surely - any evidence to suggest otherwise?

    I think you are applying far too much logic.

    If someone is insistent that giving away say a guaranteed £10k/year in return for a lump sum of £400k is a good idea and a year or two later that lump sum is suddenly only £200k someone is going to have to be to blame.

    You and I might have an idea who is at fault but the person sat with £200k isn't likely to see it the same way. Especially when PPI style claim companies start targeting them.
  • PlanToRetire
    PlanToRetire Posts: 17 Forumite
    edited 16 January 2020 at 3:41PM
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    Good afternoon all, just a quick update.

    Well, I had almost decided not to even look into the transfer process given all the hurdles. However, I was chatting to a retired friend about this, and he suggested I speak to his IFA who deals exclusively with Pensions and has assisted a quite a few of my pal’s acquaintances with their transfers. He has been my friend’s advisor for the last 18 years (my friend retired 4 years ago), and my friend speaks very highly of him.

    So I have a free first consultation with him next week, and I think given all the info I have receive here and read over the last few days, I will either go with this IFA or not doing anything at all!

    Will update once we have spoken.
  • happyandcontented
    happyandcontented Posts: 2,768 Forumite
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    Good plan, I am interested in knowing how this pans out.
  • cfw1994
    cfw1994 Posts: 1,878 Forumite
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    Interesting.
    If he has retired 4 years ago......how would he remain 'qualified' to sign off on any advice to you?
    Or can IFAs maintain their 'credentials' (& personal insurance, etc!) beyond retirement?
    Look forward to hearing how it goes!
    Plan for tomorrow, enjoy today!
  • PlanToRetire
    PlanToRetire Posts: 17 Forumite
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    cfw1994 wrote: »
    Interesting.
    If he has retired 4 years ago......how would he remain 'qualified' to sign off on any advice to you?
    Or can IFAs maintain their 'credentials' (& personal insurance, etc!) beyond retirement?
    Look forward to hearing how it goes!

    No, my friend retired 4 years ago, and the IFA continues to advise him! Sorry if not clear.
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