DB Pension Transfer £30,000 Advice Limit


The limit over which DB pension transfer advice is required is a CETV of £30,000 (safeguarded benefit limit) however in practise I do not know of one single provider who will accept a transfer below this amount without a positive recommendation by a qualified adviser. So in effect everyone who wants to consider a transfer is forced into the arms of an advisor for advice that according to the regulations is not required.

In my submission to the FCA consultation I have asked them to ensure providers will accept transfers below £30,000 without the individual being forced to take advice. It is an unnecessary and costly exercise for them (the client). The process is exactly the same regardless of the size of the transfer, there are no shortcuts and I’m sure that the regulator would not be impressed if we were taking them (shortcuts).

We have had an enquiry today, a young BS member with a £20,000 transfer value and couldn’t get an adviser to help him transfer to his Legal & General Group Personal Pension (with TATA Steel).

We gave him a couple of numbers for HL, Selftrade, Interactive Investors who have all refused to take the transfer. We have agreed to advise him for a much reduced fee but I genuinely believe he should just be able to do it himself. The rules say that he can, the product providers say that he can’t.

Once again double standards on their part as they are all running around the advisor community promoting their DB/FS transfer services.