IFA (independent financial advisor) recommendation?
Discussion
It looks like I need to engage an IFA for a pension transfer.
As a qualified accountant myself, I feel it is all a little pointless, but apparently it's a legal requirement due to the size of my pension (a licence to print money for IFAs...???).
So any recommendations welcomed, especially for someone that's not going to milk it, when in reality I am (IMHO) already suitably qualified to make my own decision, and in fact have, but need to (legally) shell out ££ for an IFA to rubber-stamp it... rolleyes... furious
(I was going to put this in the Midlands section, but I figured everything is done remotely these days, hence an IFA anywhere in the country would be fine, and doesn't need to be local to me in the Midlands).
As a qualified accountant myself, I feel it is all a little pointless, but apparently it's a legal requirement due to the size of my pension (a licence to print money for IFAs...???).
So any recommendations welcomed, especially for someone that's not going to milk it, when in reality I am (IMHO) already suitably qualified to make my own decision, and in fact have, but need to (legally) shell out ££ for an IFA to rubber-stamp it... rolleyes... furious
(I was going to put this in the Midlands section, but I figured everything is done remotely these days, hence an IFA anywhere in the country would be fine, and doesn't need to be local to me in the Midlands).
bungle said:
Mr Pointy said:
Is it a DB transfer? You may struggle to find anyone who will take on the work.
Yes. Why won't anyone do it?
https://www.ftadviser.com/pensions/2021/03/23/db-t...
A search for previous topics isn't very hopeful reading:
https://www.pistonheads.com/search#gsc.tab=0&g...
Amusing that you believe being an accountant qualifies you in DB transfer advice! No wonder we have the current rules...
Fwiw, DB transfer advice is massively time consuming for IFAs, the non-contingent charging model and fee restrictions mean it isn’t a great payer and carries huge liability for the individuals and firms involved (you understand all this already though of course, being “suitably qualified” lol).
I only enter into it on a very select basis and certainly not with a client that thinks he knows it all and is doing me a favour! Good luck with your search OP.
Fwiw, DB transfer advice is massively time consuming for IFAs, the non-contingent charging model and fee restrictions mean it isn’t a great payer and carries huge liability for the individuals and firms involved (you understand all this already though of course, being “suitably qualified” lol).
I only enter into it on a very select basis and certainly not with a client that thinks he knows it all and is doing me a favour! Good luck with your search OP.
Edited by DoubleSix on Thursday 25th March 18:23
DoubleSix said:
Amusing that you believe being an accountant qualifies you in DB transfer advice! No wonder we have the current rules...
Fwiw, DB transfer advice is massively time consuming for IFAs, the non-contingent charging model and fee restrictions mean it isn’t a great payer and carries huge liability for the individuals and firms involved.
I only enter into it on a very select basis and certainly not with a client that thinks he knows it all and is doing me a favour! Good luck with your search OP.
Ha ha. If it takes any more than an hour or two, you are not doing it right. Fwiw, DB transfer advice is massively time consuming for IFAs, the non-contingent charging model and fee restrictions mean it isn’t a great payer and carries huge liability for the individuals and firms involved.
I only enter into it on a very select basis and certainly not with a client that thinks he knows it all and is doing me a favour! Good luck with your search OP.
Key CETV number into calculation engine. Print results. Arrange a couple of 1 hour meetings with client (mostly used to try to sell them other fee generating products). That will be £15k please. Plus another £10k per year to tell you that what we told you last year was either good or rubbish advice.
But, but, but - insurance is so high, IFAs don't make any money! Oh, please. The only reason the professional indemnity insurance might be so costly for IFAs is because the risk of them needing to claim is so high. And what does that tell you?
My company is now closing its DB pension. It will be replaced by a reasonably good DC scheme.
Having seen my CETV I think would like to transfer that money into the new DC scheme once it’s up a running.
It seems that as a 41 year old I will find it hard to get an IFA to recommend this.
However, as I don’t want anyone to manage anything for me (it would go into my new company DC scheme) does this change things slightly?
Do I need a recommendation to transfer out in my case, or do I just need to prove that I’ve had independent advice? Or is that aspect up to the provider of the new company pension, which is Legal and General?
Having seen my CETV I think would like to transfer that money into the new DC scheme once it’s up a running.
It seems that as a 41 year old I will find it hard to get an IFA to recommend this.
However, as I don’t want anyone to manage anything for me (it would go into my new company DC scheme) does this change things slightly?
Do I need a recommendation to transfer out in my case, or do I just need to prove that I’ve had independent advice? Or is that aspect up to the provider of the new company pension, which is Legal and General?
DoubleSix said:
Amusing that you believe being an accountant qualifies you in DB transfer advice! No wonder we have the current rules...
Fwiw, DB transfer advice is massively time consuming for IFAs, the non-contingent charging model and fee restrictions mean it isn’t a great payer and carries huge liability for the individuals and firms involved (you understand all this already though of course, being “suitably qualified” lol).
I only enter into it on a very select basis and certainly not with a client that thinks he knows it all and is doing me a favour! Good luck with your search OP.
Given the tone of your response it's not surprising that IFAs are held in such low regard on this forum.Fwiw, DB transfer advice is massively time consuming for IFAs, the non-contingent charging model and fee restrictions mean it isn’t a great payer and carries huge liability for the individuals and firms involved (you understand all this already though of course, being “suitably qualified” lol).
I only enter into it on a very select basis and certainly not with a client that thinks he knows it all and is doing me a favour! Good luck with your search OP.
You aren't doing your profession any favours.
DoubleSix said:
OP is qualified, I’m sure he’ll let you know. If he’s busy it sounds like Simpo will be able to tell you next week once qualified...
If I'd been sufficiently interested and motivated to make my living in finance I'd have done so. I'd let the salesforce deal with Joe Punter 
DoubleSix said:
I only enter into it on a very select basis and certainly not with a client that thinks he knows it all and is doing me a favour! Good luck with your search OP.
I know what i want to do, and don't feel that I need independent advice (which will run into many ££) to make my decision. I may not be an IFA, but my background, qualifications, and 30+ years doing what I do for a living makes me confident of making the call, whether the law sees it that way or not. My DB is £xxx/year, they've offered me £yyy to transfer, I think it is fair, and whether anyone thinks I am qualified to make that call is moot to me, it just annoys me I am legally obliged to spend £zzz for confirm/ rubber stamp what I already know I want to do
It’s not ‘Independent’ advice that you need. It’s ‘Regulated’ advice.
Them’s the rules!
You just have to suck it up if you want to proceed.
Presumably, the perceived value in the benefits that you are chasing will be a multiple of any likely fee payable(>£5k)??
Console yourself with the happy thought that regulated advice is still VAT-free for the time being!
Them’s the rules!
You just have to suck it up if you want to proceed.
Presumably, the perceived value in the benefits that you are chasing will be a multiple of any likely fee payable(>£5k)??
Console yourself with the happy thought that regulated advice is still VAT-free for the time being!
bungle said:
DoubleSix said:
I only enter into it on a very select basis and certainly not with a client that thinks he knows it all and is doing me a favour! Good luck with your search OP.
I know what i want to do, and don't feel that I need independent advice (which will run into many ££) to make my decision. I may not be an IFA, but my background, qualifications, and 30+ years doing what I do for a living makes me confident of making the call, whether the law sees it that way or not. My DB is £xxx/year, they've offered me £yyy to transfer, I think it is fair, and whether anyone thinks I am qualified to make that call is moot to me, it just annoys me I am legally obliged to spend £zzz for confirm/ rubber stamp what I already know I want to do
There’s a long-standing tripartite relationship between these three professions where we all work to meet clients needs and each call upon the other at different points - “rubber stamping” doesn’t come into it, it’s about appropriate expertise. The fact that you haven’t the existing contacts to assist you would suggest you don’t understand the role each plays and certainly not the role of the IFA.
The usual suspects will be along in a minute to tell me what a meanie I am but seriously, approach any professional with the attitude of “just sign this off will you” and you’ll told to foxtrot oscar.
Edited by DoubleSix on Friday 26th March 08:51
DoubleSix said:
bungle said:
DoubleSix said:
I only enter into it on a very select basis and certainly not with a client that thinks he knows it all and is doing me a favour! Good luck with your search OP.
I know what i want to do, and don't feel that I need independent advice (which will run into many ££) to make my decision. I may not be an IFA, but my background, qualifications, and 30+ years doing what I do for a living makes me confident of making the call, whether the law sees it that way or not. My DB is £xxx/year, they've offered me £yyy to transfer, I think it is fair, and whether anyone thinks I am qualified to make that call is moot to me, it just annoys me I am legally obliged to spend £zzz for confirm/ rubber stamp what I already know I want to do
There’s a long-standing tripartite relationship between these three professions where we all work to meet clients needs and each call upon the other at different points - “rubber stamping” doesn’t come into it, it’s about appropriate expertise. The fact that you haven’t the existing contacts to assist you would suggest you don’t understand the role each plays and certainly not the role of the IFA.
The usual suspects will be along in a minute to tell me what a meanie I am but seriously, approach any professional with the attitude of “just sign this off will you” and you’ll told to foxtrot oscar.
Edited by DoubleSix on Friday 26th March 08:51
It is interesting to me that when I left my employer I signed a compromise agreement. That involved me taking independent legal advice as to the terms of my settlement, which was entirely amicable. The fee to the lawyer was £750+vat. As I understand it that's above market for these sort of things. Despite being a lawyer myself I saw value in that process.
It seems to me that what is lacking in the current arrangements is some sort of proportionality. If you like an assessment of the capability of the individual to make their own decision. If a qualified IFA decides they are competent, perhaps they should be allowed to do just that. If they need a full suite of regulated advice so be it.
It isnt lost on me that as far as I know pension transfers are the only area where this degree of consumer protection / state nannying occurs. I can punt my ISA on the riskiest stocks and no one says a word. I can (and indeed have) invest in EIS schemes which fail after self-certifying. But my pension is somehow sacrosanct. It is difficult to understand why.
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