CETV transfer to SIPP

[giles panizzi]

Following all the due diligence required, I am about to press the button to exit final salary pension scheme.

Clearly personal circumstances will dictate the advice given, but my question is how things are set up afterwards......

SO - CETV goes into a SIPP - currently this will be managed by IFA intermediary then designated fund managers.

Once CETV is in SIPP, can this be self managed or are there strict regulations around this?

CETV transfer into SIPP charges are 1% - is this the norm?

Thanks

[The Leaper]

Somebody else will respond to your specific questions.

As regards the fundamental decision I hope you really have considered all the +/- because the are certainly a lot of downside risks and maybe some gains. Hopefully this is not happening because an IFA says it's a good idea: he/she will have no exposure to the consequences, and you will.

R

[WindyCommon]

giles panizzi said:

Following all the due diligence required, I am about to press the button to exit final salary pension scheme.

Clearly personal circumstances will dictate the advice given, but my question is how things are set up afterwards......

SO - CETV goes into a SIPP - currently this will be managed by IFA intermediary then designated fund managers.

Once CETV is in SIPP, can this be self managed or are there strict regulations around this?

CETV transfer into SIPP charges are 1% - is this the norm?

Thanks

Your SIPP can be self-managed if the provider offers an execution-only platform. If they don't, you can switch to one that does. There was a good discussion on this here recently.

Who is taking the 1% and for what? Is it your adviser for the work he has performed on your behalf? Or the SIPP provider? It is usual/necessary for the advice required by regulation to be paid for, and paying it from the SIPP can be efficient as it can be invoiced without VAT. If it's anything else, then post back here.

[Ginge R]

giles panizzi said:

Following all the due diligence required, I am about to press the button to exit final salary pension scheme.

Clearly personal circumstances will dictate the advice given, but my question is how things are set up afterwards......

SO - CETV goes into a SIPP - currently this will be managed by IFA intermediary then designated fund managers.

Once CETV is in SIPP, can this be self managed or are there strict regulations around this?

CETV transfer into SIPP charges are 1% - is this the norm?

Thanks

Going off at a tangent, and I mean this genuinely, two things strike me. The IFA that you have should be able to answer these points, and if you're at all still unsure about some of the more fundamental issues such as running it (and costs).. are you sure about all other aspects too? Namely, the principle of transferring out of your DB scheme.

I'm not one of those advisers who sucks through his teeth and says 'never do it' (because there are some sound reasons why it can make perfect sense) and I'm not one who says 'do it!'. Every client is different. But I wonder if you are sufficiently in possession of enough facts in order to make an objective, suitably well informed decision.

Briefly though: As Windy has mentioned, the amount of latitude that you have will depend on the SIPP, not all are self managed, or even able to be self managed. If you want simplicity and (usually) cheapness, a good personal pension might be more (than) appropriate. 1% transfer fees, is it the norm? There or thereabouts, yes. If the transfer amount is small, then it's probably well priced. If it's big, then maybe the value starts to pivot towards the adviser.

Read this yesterday, by way of loose context about transferring: http://www.professionalpensions.com/professional-p...

Clearly, Met Life stands to gain from it, don't forget.

[giles panizzi]

Thanks all for the comprehensive responses. I am still in the the throws of getting to the absolute detail and still have outstanding meeting and recommendation/non-recommendation to be delivered. Just trying to get my beans in a row and ask challenging questions accordingly hoping to have the correct answers at the back of my mind.

Many thanks