Providers look out for themselves first
Regarding your article ‘Advisers slam Prudential service as a “land grab”’(Jun 25).
Your article provides a range of views that may all have some basis in fact.
Some of the larger providers have historically promised great new systems to benefit the adviser and plan holder, but unfortunately they used the new system as a platform for making clients choose between their adviser and doing it themselves online.
Providers will first and foremost look after their own interests while making all the right noises with the Financial Conduct Authority.
Some providers have improved online facilities, but this does not necessarily mean the plan holder’s needs are really met. The provider just relies on a tick-box questionnaire to cover its back, but the client can easily manipulate the questionnaire to justify cash withdrawal.
An IFA will know his client, including other holdings or lack thereof, and can more easily identify an insistent client.
With regard to Prudential, it has previously messed with the IFA-client relationship and it has taken some time for them to win back IFA trust. Let us hope this is not happening again.
Good advisers lose out
Regarding your article ‘Charging ban to cost IFAs up to 400k a year’ (June 19).
A typical move from the FCA – rather than deal with the problematic advisers, it is easier for it to wield the sledge hammer to the whole market, to the detriment of clients and good advisers.
No consideration in this appears to be given to clients, especially those who are cash poor and pension rich when it remains good financial sense to transfer and is demonstrably in the client’s best interest.
If taking fees out of products that have benefited from tax relief is now bad advice, when will the same illogical decision be applied to defined contribution to DC transfers.
It seems to me that good advisers are continually expected to pay for the shortcomings of the bad when the regulator is asleep on duty, costing clients millions.
Client should have final say
Following your article ‘FCA steps in on hundreds of adviser PI cases’ (Jun 17).
I turned 55 in February 2020 and was eligible to take my company pension as a cash transfer value or lump sum and monthly pension.
I have known for several years I wanted to take the CTV but I was unable to get a consultant in Northern Ireland to deal with this.
They kept telling me on the telephone that it would be difficult for me to take the CTV and I would be better to take the DB pension.
I did not make appointments to see the consultants as I found them off-putting.