Small DB transfer

T_SmithT_Smith Member

After some thoughts on this...

A client has contacted us as they are looking to transfer their DB scheme into their PP. The income from the DB is less than £200 pa, with the CETV being around £5k.

They've tried to transfer it themselves, as its under the £30k limit, though the receiving scheme, where the rest of the benefits are, will not accept it without advice.

She could use small pots rules to access, but by telling her that we are then tripping into advice.....?

Comments

  • JonaJona Member
  • Given the size of the CETV what is the Trustees legislative basis for not allowing the transfer? Do their scheme rules say advice must be given for all transfers? I would challenge the trustee's right to prevent the transfer.

  • How is it advice? If you tell her that is an option you're not giving an opinion, you are giving her factual information on an option which is available to anyone

    Please do correct me if I am wrong... :smile:

  • richallumrichallum Administrator

    She could transfer to a stakeholder (they have to accept) then to her scheme of choice.

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • JonaJona Member

    @Andy_Schleider maybe I am being over cautious - but if you are only presenting the option of one course of action without giving a balanced view of all the other options she could possibly take you are "leading" the client and this could be seen as advice.

  • T_SmithT_Smith Member

    So, I am thinking of offering her all the options, of which one will be to take as small pots. Once she is then in receipt of the facts, she can make her mind up, pretty much like a DB triage (ish)

    @richardgough, it is the receiving scheme that won't accept the transfer, there's now a couple I know of who are the same, James Hay, Royal London (so far).
    @richallum that could then be one of the options offered (if not a little long winded)

    cheers everyone

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