chiangmai
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Post by chiangmai on Dec 20, 2018 2:33:05 GMT 7
It may be useful to the expat cause to email your comments to Chris Woolard, Director of Strategy at the FCA, perhaps along with a precis of your financial services background.
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chiangmai
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Post by chiangmai on Dec 20, 2018 7:38:23 GMT 7
Director Woolard gave a speech at the Pensions Policy Institute in July where he said, amongst other things, "In both areas, we are driven by one overarching principle; to make markets work well. To achieve a state of affairs where as many people as possible have an income in retirement that is adequate, or at least, in line with their expectations. To do this, we need a few things: to ensure, as far as possible, that consumers are engaged when making decisions products that offer good value for money – healthy competition is a core part of this savings that are invested appropriately – in line with the particular needs of that consumer. There are, however, certain factors stand in the way of us achieving this goal In particular, despite the boost provided by auto-enrolment, not enough people are putting money away or feel they have the money to put away. Our Financial Lives survey showed that just 35% of 45 to 54 year olds have given a significant amount of thought to how they will manage in retirement. Meanwhile, low interest rates make getting good returns harder". It might be worth taking him to task on the underlined (above) and ask him exactly how do expats engage, in light of regulation - www.fca.org.uk/news/speeches/intergenerational-challenges-pensions
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Post by rgs2001uk on Dec 21, 2018 21:11:44 GMT 7
Director Woolard gave a speech at the Pensions Policy Institute in July where he said, amongst other things, "In both areas, we are driven by one overarching principle; to make markets work well. To achieve a state of affairs where as many people as possible have an income in retirement that is adequate, or at least, in line with their expectations. To do this, we need a few things: to ensure, as far as possible, that consumers are engaged when making decisions products that offer good value for money – healthy competition is a core part of this savings that are invested appropriately – in line with the particular needs of that consumer. There are, however, certain factors stand in the way of us achieving this goal In particular, despite the boost provided by auto-enrolment, not enough people are putting money away or feel they have the money to put away. Our Financial Lives survey showed that just 35% of 45 to 54 year olds have given a significant amount of thought to how they will manage in retirement. Meanwhile, low interest rates make getting good returns harder". It might be worth taking him to task on the underlined (above) and ask him exactly how do expats engage, in light of regulation - www.fca.org.uk/news/speeches/intergenerational-challenges-pensionsAs mentioned before, I phoned one of these companys direct, and was told its UK law I must go through a third party, I cheekily said I dont live in the UK, answer was, but we do. Why am I not given the option of signing a waiver, or ticking a box to say, third party advice was offered, but not taken. Too many are "betting on the come" they think their overpriced house will be their retirement plan, sell up and move to the coast. Witnessed this before, people selling their 100k uk house and investing the proceeds in the bank (15% interest rates) lets retire to Spain and live happily ever after, no need to continue, we already know it was a train wreck.
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chiangmai
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Post by chiangmai on Dec 22, 2018 2:37:47 GMT 7
I find this whole business of IFA advisement very disturbing. Advice can be given as long as it is both given and received in the UK, but it is not valid if it is given in the UK and received overseas. all of which makes a mockery of how we communicate in the digital age. Yet the FCA, the people who are supposed to be policing the rules on these things claim there are no legal restrictions governing where the advice is given, these "rules" have been created by the companies and the IFA's themselves, for whatever reason. Ditto "the law" in the UK that a third party must be in play before a consumer can act, is that really the law or is that a convenient excuse to steer consumers towards paying third party fees? I don't have an IFA and my platform provider keeps sending me notices that are required to be sent about this and that, each of which starts with the words, "since you don't have an IFA".
I smell fish!
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Post by rgs2001uk on Dec 24, 2018 20:52:27 GMT 7
I find this whole business of IFA advisement very disturbing. Advice can be given as long as it is both given and received in the UK, but it is not valid if it is given in the UK and received overseas. all of which makes a mockery of how we communicate in the digital age. Yet the FCA, the people who are supposed to be policing the rules on these things claim there are no legal restrictions governing where the advice is given, these "rules" have been created by the companies and the IFA's themselves, for whatever reason. Ditto "the law" in the UK that a third party must be in play before a consumer can act, is that really the law or is that a convenient excuse to steer consumers towards paying third party fees? I don't have an IFA and my platform provider keeps sending me notices that are required to be sent about this and that, each of which starts with the words, "since you don't have an IFA". I smell fish! Dont the Americans have something called the RICO act? Its like putting the foxes in charge of the hen house.. Rumour has it my local postie will be putting in a claim against these uk based companies, he has turned into a hunchback delivering reams of paperwork I neither need nor want, but my uk based provider is required to send me. Quarterly effin charts and graphs, there is a whole new industry sprung up just to churn out effin paperwork.
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AyG
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Post by AyG on Dec 25, 2018 7:24:47 GMT 7
Dont the Americans have something called the RICO act? RICO? Sounds Hispanic to me. Doubtless Trump will have it revoked shortly. Actually, since it provides for extended criminal penalties being part of an ongoing criminal organisation, it would be in Trump's best interests as head of such an organisation to have it revoked a.s.a.p.. He's not going to look good in an orange jumpsuit, so the less time doing so, the better.
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chiangmai
Crazy Mango Extraordinaire
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Post by chiangmai on Dec 25, 2018 15:45:41 GMT 7
RICO = Racketeer Influenced Corrupt Organisations (act), it's a perfect match except the UK doesn't really have an equivalent, Canada and Australia do but not the UK....hmm, that's odd, there's that fish smell again!
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Post by Fletchsmile on Dec 27, 2018 17:33:31 GMT 7
I find this whole business of IFA advisement very disturbing. Advice can be given as long as it is both given and received in the UK, but it is not valid if it is given in the UK and received overseas. all of which makes a mockery of how we communicate in the digital age. Yet the FCA, the people who are supposed to be policing the rules on these things claim there are no legal restrictions governing where the advice is given, these "rules" have been created by the companies and the IFA's themselves, for whatever reason. Ditto "the law" in the UK that a third party must be in play before a consumer can act, is that really the law or is that a convenient excuse to steer consumers towards paying third party fees? I don't have an IFA and my platform provider keeps sending me notices that are required to be sent about this and that, each of which starts with the words, "since you don't have an IFA". I smell fish! On the subject of: Transferring out of a defined benefit scheme, the UK Pension Schemes Act 2015 requires that a member gets independent advice. The trustees or managers must check that you get advice and won't release funds until you have,
eg Chapter 2 para 48 onwards
It then goes on to expand about what is appropriate advice and that they can they say what is required.
There are then various other documents that get linked to it, where the FCA keeps making requirements more and more strict, eg adding consultation papers and Policy Statements such as CP 18/16 Advising on Pension Transfers, PS18/20 Improving the Quality of Pensions advice
I tried asking my scheme provider as well as many of the IFAs I spoke to if there were exemptions, waivers I could sign etc etc. The answer is no. If it's above 30k you must get independent financial advice. I even asked if I could transfer 29,999 without advice and leave the rest, and the scheme provider said no ![:)](//storage.proboards.com/forum/images/smiley/smiley.png)
On the subject of to what extent and IFA can advise someone overseas, it seems a lot of IFAs don't understand/ don't know what the rules are. I've heard various different versions. There can be differences as to whether selling something to someone overseas, whether the product is outside UK, whether just advising etc.
In the end I've gone with an IFA who seems decent and on a basis where they get remunerated on success. So if it falls through and they have got something wrong the liability is on them. it inspires confidence that someone will do on this basis, that they know what they are doing. The FCA have issued consultancy papers though as to whether contingent fees (like mine) should be banned or not. They say it could lead to a conflict of interest so the advice will more likely favour transferring out than being independent. As stands it is still permissible, but not sure how long that will last. If not a contingent fee you could up paying a few thousand quid and then someone says it's not in your interest ![:)](//storage.proboards.com/forum/images/smiley/smiley.png)
The whole thing is disturbing and sucks. I'll be happy to draw a line under it all.
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Post by rgs2001uk on Dec 27, 2018 21:34:04 GMT 7
I find this whole business of IFA advisement very disturbing. Advice can be given as long as it is both given and received in the UK, but it is not valid if it is given in the UK and received overseas. all of which makes a mockery of how we communicate in the digital age. Yet the FCA, the people who are supposed to be policing the rules on these things claim there are no legal restrictions governing where the advice is given, these "rules" have been created by the companies and the IFA's themselves, for whatever reason. Ditto "the law" in the UK that a third party must be in play before a consumer can act, is that really the law or is that a convenient excuse to steer consumers towards paying third party fees? I don't have an IFA and my platform provider keeps sending me notices that are required to be sent about this and that, each of which starts with the words, "since you don't have an IFA". I smell fish! On the subject of: Transferring out of a defined benefit scheme, the UK Pension Schemes Act 2015 requires that a member gets independent advice. The trustees or managers must check that you get advice and won't release funds until you have,
eg Chapter 2 para 48 onwards
It then goes on to expand about what is appropriate advice and that they can they say what is required.
There are then various other documents that get linked to it, where the FCA keeps making requirements more and more strict, eg adding consultation papers and Policy Statements such as CP 18/16 Advising on Pension Transfers, PS18/20 Improving the Quality of Pensions advice
I tried asking my scheme provider as well as many of the IFAs I spoke to if there were exemptions, waivers I could sign etc etc. The answer is no. If it's above 30k you must get independent financial advice. I even asked if I could transfer 29,999 without advice and leave the rest, and the scheme provider said no ![:)](//storage.proboards.com/forum/images/smiley/smiley.png)
On the subject of to what extent and IFA can advise someone overseas, it seems a lot of IFAs don't understand/ don't know what the rules are. I've heard various different versions. There can be differences as to whether selling something to someone overseas, whether the product is outside UK, whether just advising etc.
In the end I've gone with an IFA who seems decent and on a basis where they get remunerated on success. So if it falls through and they have got something wrong the liability is on them. it inspires confidence that someone will do on this basis, that they know what they are doing. The FCA have issued consultancy papers though as to whether contingent fees (like mine) should be banned or not. They say it could lead to a conflict of interest so the advice will more likely favour transferring out than being independent. As stands it is still permissible, but not sure how long that will last. If not a contingent fee you could up paying a few thousand quid and then someone says it's not in your interest ![:)](//storage.proboards.com/forum/images/smiley/smiley.png)
The whole thing is disturbing and sucks. I'll be happy to draw a line under it all.
I'll be happy if you pls send me a pm with the details of the ifa.
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Post by Fletchsmile on Feb 20, 2019 14:38:55 GMT 7
All sorted on this now. Successful transfer of defined benefit scheme to HL SIPP completed. I'm very happy with the move and rates given that annuity rates and hence transfer values are close to all time lows / highs respectively. I really didn't appreciate having to use a financial advisor and the costs that entails. But there's no way round that for a pension worth over GBP 30k. However, I was very happy with the IFA I used, and they did a great job, in a professional and transparent manner.
Next step - invest the money:)
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