Could I ask for Admin to Pin this to the top of the Group for a few weeks - its an important message and people are getting ripped off out there - thanks. *WARNING – PREDATORS ARE STALKING YOUR PENSION* Over the last few months I’ve had a number of emails, facebook messages, group threads and calls to me regarding the transfer of pension funds. I am a Sapper, ex-Regimental Chief Clerk, and after leaving God’s Corps I entered the world of financial services where I am now a Chartered Financial Planner, with 24 years’ experience. I live near Catterick and have a number of military clients. I always make sure that the servicemen I look after get an understandable and fair deal, even the dropshorts! One of our own was contacted recently, a cold call or email is the way they do it, and he responded to the simple question “Have you got a frozen pension with a previous employer?” From what he put on facebook I was concerned that he was getting ripped off and we made contact. Once he sent me all the papers and I had a look at them I knew what they were trying to get him to do was wrong, and potential financially devastating for him in the future – the future for him being some 30 years in the future, by which time these people will be long gone. I also spoke to my colleague at work whose prime role in life is pensions, whereas I am a General Practitioner. I also made contact with a firm called RPMI, an organisation that provides pension services, just to see whether they have seen an increase in these kind of calls – they have. Now, as a total coincidence, I also took a call, to my mobile, from a firm called PAIR MARKETING – and lo and behold he was asking the same questions. The firm is a lead generation firm – they get a warm lead and then sell it to a financial services or worse, a pension transfer firm, for a fee. This is not illegal. The guy I spoke to DID break the law yesterday because I knew what to ask him – such as “are you actually giving me advice on my pension?”, to which he replied yes – when I asked for his IRN with the FCA (Individual Reference Number - Financial Conduct Authority) he had no idea what I was talking about. They are not bothered, they are paid on getting leads. Other firm out there working hard at the moment (and there are many) to get their hands on your money is the PINNACLE PENSION SCHEME. Their website does not work – it also says they are Authorised and Regulated by the Financial Services Authority, which ceased to exist on 31st March 2013, and the registration number quoted shows there are no regulated individuals at that firm. A little bit more digging by me shows that the company address is also used by 37 other companies - now I’m worried. You can check all regulated firms AND individuals on the FCA Register – fsa.gov.uk/register/home.do - you can look me up under my name and my individual number DTM00010. Every adviser you deal with can be checked on this site and I encourage you to do so – it’s free and it is there for the public to use. Pinnacle are just one of many companies who are able to obtain leaver lists from certain occupational groups and play on the individual’s lack of ability to run their own affairs when they leave the RAF, Army, Navy regime. However to transfer the pension would be a grave mistake with the obvious implications that I already know because of the experience I have in this area. Anyone that transfers to a scheme that Pinnacle are proposing means that they will not have control of the risk profile the money is invested in and the company detail does not conform to the regulated activities guidance. Any individual doing this would find themselves with very little, if none at all, recourse later. Pinnacle get around this by not giving advice, they just do the paperwork and the onus falls on the individual transferring. Hidden well within the document they provide is the little fact of the 7% they take from the funds as a fee, and the 1% they take annually thereafter! Companies I deal with will not accept transfers from the AFPS scheme unless it is advisory work. I in turn will not advise anyone to transfer therefore the client does not move. These firms are jumping into the small window left, which is to be closed by the Government in April 2015. It is unbelievable that the authorities in the UK provide clearance for this to continue. One point that most people in the Armed Forces Pension Scheme (and other government funded schemes) is that the Government does not have a fund to pay pensions to the Public Sector, since it is the taxpayer that keeps the thing afloat – in other words, there is no money in your pot, it is paid as a pension when you retire and is funded out of the public purse. Being a cynical kind of chap that service in the Sappers gives you then I know that large scale transfers out of the AFPS would reduce long term liabilities to the Government – so why not allow it to continue as a trickle – however, after April 2015 when all the new rules come into force it simply cannot be afforded hence the ban will start on 6th April. For me, in 99% of cases, it is a NO NO to transfer your Forces Preserved Pension. In some cases, it may be the right thing to consider – but only after regulated advice has been sought and given by a qualified pension transfer specialist. I am more than willing to take calls from any of you who wish to discuss financial services matters (don’t ask me about Sapperfest as I can’t remember) – you can PM me and I’ll get back to you. I’m not after more clients, I have enough as it is, thanks to the banks closing up shop – I’m 54 and trying to retire myself at some stage! But I will help if needed – Once a Sapper, Always a Sapper.
Posted on: Thu, 21 Aug 2014 11:16:31 +0000
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