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IFA FAQs

Most of the questions you may have about how our process works, you will be able answered in the Defined Benefit Pension Transfer section. In the most part, the bulk of the questions we receive from introducing IFAs are around how the fee structure works and whether we accept Insistent Clients, these are answered below.

If you have any other questions, please feel free to either call us, or complete the Get in Touch form at the bottom of this page.

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FAQ’s – Defined Benefit Pension Transfer Service For IFA’s

What if a client can’t afford to pay for full advice?

There is an option for us to carve-out individuals in serious financial difficulty or serious ill health.

For these individuals, a fee is only paid if a pension transfer goes ahead, in which case our fee can usually be deducted from the pension fund itself.

We will automatically investigate if someone is eligible for carve-out at the abridged advice stage.

If they receive full advice and decide not to proceed with a transfer, assuming they have been eligible for carve-out, they will not have to pay a fee.

If a client proceeds with full advice, when do they have to pay the fee?

The client does not have to pay the fee until the very end of the process has been completed.

In most cases, if a transfer has gone ahead, we would expect to be able to deduct the fee directly from the receiving pension fund once the transfer has completed, so they will not have to do anything.

If a transfer has not gone ahead, then at the final stage of closing their file, we will write to the client requesting settlement of the fee.

What is the latest a client can stop their enquiry without paying a fee?

A client can go right the way through and complete the process right up to us providing them with abridged advice. If they decide not to proceed any further, then they will not pay any fee.

This means they will have been able to discuss their case with a fully qualified and fca regulated adviser and received our abridged advice report, where the outcome of our recommendation will either be a transfer is not suitable or, we are unable to ascertain suitability.

Read our Guide to Abridged Advice for a more details.

Can a client always pay the fee out of their pension fund?

If a transfer goes ahead then a client can usually pay the fee direct from the pension fund. This has the advantage of it being deducted from a virtually tax-free fund, rather than being paid out of taxed income or savings.

However, if they prefer, they can pay us by cheque or via bank transfer, this might be preferable if they are transferring their pension for inheritance tax planning purposes and wish to maximise potential death benefits.

Where a workplace pension scheme (wps) has had to be recommended, some of these are unable to facilitate the deduction of our advice fee, in these circumstances, the client will need to settle our fee directly before a transfer goes ahead.

As the introducer, do I have to charge an initial fee?

In a word, no. A lot of introducers these days just charge an ongoing fee, which they can take once the agency is switched back to them. This will cover regular reviews and updates for their client.

If I charge an initial fee, how is this paid for?

Many introducers prefer to charge a fixed initial administration fee, to cover their time for gathering the first stage of pension information and completing the fact-find with their client. This administration fee can be paid direct to the introducer by their client before that person is introduced to us. In these instances, we do not need to be informed or take it into account within our analysis.

Can you deduct the initial fee on my behalf?

Yes, but you must bear in mind that if you ask us to arrange payment of your initial fee, whether that is a fixed amount or percentage of the clients pension fund, this will have to apply if the client elects to proceed to full advice and irrespective of whether a transfer goes ahead or not.

What if our advice is not to transfer but a client wants to go ahead anyway?

If a client does not want to take our advice, in certain circumstances we could still proceed with transferring their pension if they insist.

However, we reserve the right to refuse such a transfer if it is particularly unsuitable.

Read our Guide to Insistent Clients for more details.

Can I decide the product destination and investments?

We have a Preferred Provider List, however, there are a number of product providers and investment funds we have carried out due diligence on that we are happy to recommend.

Whilst we will consider any suggestion from our Introducing IFA’s, as we have responsibility for both the product and investment recommendation, the final decision is ours.

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If you would like to find out more about our DB pension transfer service for IFA's or visit us, get in touch below and one of our IFA Liason Team will contact you.

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