[Finance] IFA Help

Rugrat · Nov 10, 2020

It's an 'old chestnut' but grateful for help.

My S-i-L has very small final salary pension upcoming and she really wants to take the transfer value and put in her personal pension. I'm totally familiar with all the rights and wrongs, financial services all my life but not CF30 so can't do it for her. Makes no sense for her not to do it but need an IFA to sign her form.

If you can help please PM

Driver8 · Nov 10, 2020

If it’s under £30k she can do it without advice, although her personal pension provider may have their own rules about allowing transfers in.

Live by the sea · Nov 10, 2020

An IFA shouldn’t charge for signing , normally goodwill .

Driver8 · Nov 10, 2020

Live by the sea said:
An IFA shouldn’t charge for signing , normally goodwill .

No IFA will just sign off something like that. The IFA takes all the responsibility (and potential liability) for the transfer.

dazzer6666 · Nov 10, 2020

Driver8 said:
If it’s under £30k she can do it without advice, although her personal pension provider may have their own rules about allowing transfers in.

This.

Driver8 said:
No IFA will just sign off something like that. The IFA takes all the responsibility (and potential liability) for the transfer.

This.

Live by the sea said:
An IFA shouldn’t charge for signing , normally goodwill .

Absolutely not this.

Yes Chef · Nov 10, 2020

I like the West Coast American ones, and some of the modern New England are great, but for something closer to home I'd recommend an Oakham 'Citra', 4.6%, got a few fans on here I recall.

Hop this helps

LlcoolJ · Nov 10, 2020

Yes Chef said:
I like the West Coast American ones, and some of the modern New England are great, but for something closer to home I'd recommend an Oakham 'Citra', 4.6%, got a few fans on here I recall.

Hop this helps

Currently on an Abbeydale Brewery "Voyager". 5.6% and very nice.

WATFORD zero · Nov 10, 2020

Driver8 said:
If it’s under £30k she can do it without advice, although her personal pension provider may have their own rules about allowing transfers in.

And if it's over 30K most IFA's charge a 'stepped' percentage based on the pension value. It can end up with quite significant charges in absolute terms, if not in percentage terms. I seem to remember there is a certain qualification that an IFA has to have to give the advice above 30K.

If you leave it long enough, NSC's self-confessed richest poster (an IFA) will answer :lolol:

Driver8 · Nov 10, 2020

WATFORD zero said:
And if it's over 30K most IFA's charge a 'stepped' percentage based on the pension value. It can end up with quite significant charges in absolute terms, if not in percentage terms. I seem to remember there is a certain qualification that an IFA has to have to give the advice above 30K.

If you leave it long enough, NSC's self-confessed richest poster (an IFA) will answer

I’m an IFA too [emoji6]. Obviously not as rich though.

Rugrat · Nov 10, 2020

It's £2k pa or £63k transfer

Driver8 · Nov 10, 2020

Rugrat said:
It's £2k pa or £63k transfer

I’m afraid she may struggle to find an IFA prepared to arrange the transfer for a what she may deem reasonable fee for the sum involved.

We have decided not to advise on DB transfers at the moment because they are such a minefield for advisers. When we did our minimum fee was £7,500 plus VAT and to be honest that barely covered our costs.

Rugrat · Nov 10, 2020

Driver8 said:
I’m afraid she may struggle to find an IFA prepared to arrange the transfer for a what she may deem reasonable fee for the sum involved.

We have decided not to advise on DB transfers at the moment because they are such a minefield for advisers. When we did our minimum fee was £7,500 plus VAT and to be honest that barely covered our costs.

Yeah, the whole FS biz has gone mad. The regulator is clueless, stopped people getting ripped off and now they're getting ripped off.

C'est la vie

Live by the sea · Nov 10, 2020

Driver8 said:
I’m afraid she may struggle to find an IFA prepared to arrange the transfer for a what she may deem reasonable fee for the sum involved.

We have decided not to advise on DB transfers at the moment because they are such a minefield for advisers. When we did our minimum fee was £7,500 plus VAT and to be honest that barely covered our costs.

£7,500 ! You joking . No wonder lots of people shun IFA’s !

Mancgull · Nov 10, 2020

The regulator has now introduced non contingent charging on Defined Benefit transfers which means that you pay the same price whether the advice is to remain with the scheme or transfer. A Pension Transfer Specialist Firm such as Pension Works, who give telephone based DB pension advice, will give advice on a pension of this size for c £2500.
Check them out at pensionworks.co.uk

LlcoolJ · Nov 10, 2020

Driver8 said:
I’m afraid she may struggle to find an IFA prepared to arrange the transfer for a what she may deem reasonable fee for the sum involved.

We have decided not to advise on DB transfers at the moment because they are such a minefield for advisers. When we did our minimum fee was £7,500 plus VAT and to be honest that barely covered our costs.

Ouch. What are the costs involved so that £7.5k barely makes a profit? I'm guessing regulatory fees and stuff. Just interested btw as I know nothing about this stuff.

My mate is an IFA but just does mortgages and insurance. I did ask him why he didn't do pensions and he said "**** that mate!".

Steve Foster · Nov 10, 2020

Hi,

We are one of the largest firms of IFAs in Sussex & regrettably made the difficult decision to stop giving advice on Final Salary Defined Benefit Schemes in the Spring. The exorbitant costs of regulation & PI insurance just doesn’t make it viable.

I can only recommend undertaking a search on www.VouchedFor.co.uk/ or www.unbiased.co.uk/

Good luck but I fear you will struggle

timbha · Nov 10, 2020

Steve Foster said:
Hi,

We are one of the largest firms of IFAs in Sussex & regrettably made the difficult decision to stop giving advice on Final Salary Defined Benefit Schemes in the Spring. The exorbitant costs of regulation & PI insurance just doesn’t make it viable.

I can only recommend undertaking a search on www.VouchedFor.co.uk/ or www.unbiased.co.uk/

Good luck but I fear you will struggle

“Regrettably” ?

Weststander · Nov 10, 2020

Driver8 said:
I’m afraid she may struggle to find an IFA prepared to arrange the transfer for a what she may deem reasonable fee for the sum involved.

We have decided not to advise on DB transfers at the moment because they are such a minefield for advisers. When we did our minimum fee was £7,500 plus VAT and to be honest that barely covered our costs.

Actual external and payroll costs, or charged time?

Weststander · Nov 10, 2020

LlcoolJ said:
Ouch. What are the costs involved so that £7.5k barely makes a profit? I'm guessing regulatory fees and stuff. Just interested btw as I know nothing about this stuff.

My mate is an IFA but just does mortgages and insurance. I did ask him why he didn't do pensions and he said "**** that mate!".

Like property development where small developers can’t afford the red tape and time involved in planning, it sounds like smaller advisors have pulled out due to red tape and risks.

Leaving the next levels up to mint it. I know a Sussex firm of wealth/pension advisers, making a profit in excess of £2m a year.

LlcoolJ · Nov 11, 2020

Weststander said:
Like property development where small developers can’t afford the red tape and time involved in planning, it sounds like smaller advisors have pulled out due to red tape and risks.

Leaving the next levels up to mint it. I know a Sussex firm of wealth/pension advisers, making a profit in excess of £2m a year.

Makes sense. Price the little man out and pull up the drawbridge.

Cheers mate.

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[Finance] IFA Help

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