£1100 for an advice letter to transfer-in :-0
Discussion
All,
I need to transfer around £50k from a stakeholder pension into my main SIPP. Apparently my SIPP provider won’t allow the transfer-in without advice being evidenced. I’m not try to reinvest - just move the funds from one pension to another (the SIPP).
I’ve had a couple of quote for the advice - around £1100.. seems a bit lumpy...2% of the amount being transferred to tick a box!
Does that sound reasonable? Any suggestions from you pension types on more cost effective alternatives?
Cheers,
UV
I need to transfer around £50k from a stakeholder pension into my main SIPP. Apparently my SIPP provider won’t allow the transfer-in without advice being evidenced. I’m not try to reinvest - just move the funds from one pension to another (the SIPP).
I’ve had a couple of quote for the advice - around £1100.. seems a bit lumpy...2% of the amount being transferred to tick a box!
Does that sound reasonable? Any suggestions from you pension types on more cost effective alternatives?
Cheers,
UV
I had this explained to me by an IFA friend when I was informally discussing transferring and old DB pension scheme into my SIPP....I didnt bother in the end.
You and I we think its just ticking a box, but to the IFA doing the exercise they actually have many pages of paperwork\analysis to do and have to put their name to this analysis as being the correct advice for your circumstances. Pension advice is strictly regulated for our protection.
Not justifying the cost, as im sure some IFA charge differently on a per case basis, just offering an explanation.
You and I we think its just ticking a box, but to the IFA doing the exercise they actually have many pages of paperwork\analysis to do and have to put their name to this analysis as being the correct advice for your circumstances. Pension advice is strictly regulated for our protection.
Not justifying the cost, as im sure some IFA charge differently on a per case basis, just offering an explanation.
This makes no sense, as the stakeholder pension is presumably 100% DC with no investment guarantees or special annuity options, so why should advice be needed?
I've this year made two transfers-in to a James Hay SIPP which proceeded smoothly without any advice being required. One was the full transfer of a Standard Life GPP ('rebate only' for those with long memories). The other was a partial transfer of cash from a Hornbuckle/ Rowanmoor SIPP (can't transfer the balance until a 3rd party loan is redeemed).
I've this year made two transfers-in to a James Hay SIPP which proceeded smoothly without any advice being required. One was the full transfer of a Standard Life GPP ('rebate only' for those with long memories). The other was a partial transfer of cash from a Hornbuckle/ Rowanmoor SIPP (can't transfer the balance until a 3rd party loan is redeemed).
Ultraviolet said:
All,
I need to transfer around £50k from a stakeholder pension into my main SIPP. Apparently my SIPP provider won’t allow the transfer-in without advice being evidenced. I’m not try to reinvest - just move the funds from one pension to another (the SIPP).
I’ve had a couple of quote for the advice - around £1100.. seems a bit lumpy...2% of the amount being transferred to tick a box!
Does that sound reasonable? Any suggestions from you pension types on more cost effective alternatives?
Cheers,
UV
Who’s the (intended) receiving SIPP?I need to transfer around £50k from a stakeholder pension into my main SIPP. Apparently my SIPP provider won’t allow the transfer-in without advice being evidenced. I’m not try to reinvest - just move the funds from one pension to another (the SIPP).
I’ve had a couple of quote for the advice - around £1100.. seems a bit lumpy...2% of the amount being transferred to tick a box!
Does that sound reasonable? Any suggestions from you pension types on more cost effective alternatives?
Cheers,
UV
Ginge R said:
Who’s the (intended) receiving SIPP?
Hi GingeIt’s with Mattioli Woods... tbh had I not already just been charged annual fees I might take this as an opportunity to move the entire SIPP elsewhere!
Am I right in thinking this is an unnecessary step / cost? Are there any guidelines out there that state the circumstances when this type of paperwork is and is not required?
Cheers,
UV
Ultraviolet said:
Hi Ginge
It’s with Mattioli Woods... tbh had I not already just been charged annual fees I might take this as an opportunity to move the entire SIPP elsewhere!
Am I right in thinking this is an unnecessary step / cost? Are there any guidelines out there that state the circumstances when this type of paperwork is and is not required?
Cheers,
UV
Mattioli Woods are one of the most expensive SIPP providers out there. This is primarily due not only to high SIPP fees but also the fact they insist everything is advised upon by their in-house advisers (as they are doing in your case).It’s with Mattioli Woods... tbh had I not already just been charged annual fees I might take this as an opportunity to move the entire SIPP elsewhere!
Am I right in thinking this is an unnecessary step / cost? Are there any guidelines out there that state the circumstances when this type of paperwork is and is not required?
Cheers,
UV
They also have a senior SIPP manager check through all of the work your general SIPP manager has done, but time charge you for both people doing the same job!
We only found a lot of this out when a former employee joined us and couldn't believe we didn't charge for the things they did. Average annual SIPP charges there were between £2,000 to £3,000 and back then most was not fully disclosed.
Needless to say we won't take anyone on who has come from there anymore as their entire work ethic is completely different to ours.
You may be financially better off taking the hit on the year's plan charge rather than paying the advice fees the annual ad-hoc fees (these ad hoc fees make up the lion's share of the figure quoted above and are in excess of the main SIPP fee you have just paid and the adviser fees).
Charges and the requirement to used one of their advisers aside there is nothing wrong with them, but that is putting one hell of a lot aside!
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