Montfort puts Defined Benefit Transfers in the spotlight

If you have a Defined Benefit (DB) pension and are considering transferring out, you may have concerns due to recent media reports which focus on issues surrounding DB contingent charging. Now, choosing the right way forward could feel like an uphill struggle. Here, Montfort International considers issues uncovered by the Financial Conduct Authority (FCA) and explains how our firm ensures the provision of unbiased advice.

DB transfers have been put in the spotlight following a proposed ban on contingent charging for DB transfer advice by the FCA. The proposal comes after various studies and research by the regulator into DB pension advice. Contingent charging is a model whereby financial advisers are paid following the transfer of a client’s pension, rather than charging a client an upfront fee for advice.

The FCA said: “We are concerned that too many advisers are delivering poor advice, much of it driven by conflicts of interest in the way they are remunerated. In particular, the practice of contingent charging creates an obvious conflict.”

The Regulator is concerned that firms are recommending large numbers of consumers transfer out of their defined benefit pension schemes despite the FCA’s stance that transfers are likely to be unsuitable for most clients.

At Montfort International our advisers stress that there are many important things you should consider before deciding on a DB transfer as there are always pros and cons to transferring. The UK government recommends that you should seek financial advice from a qualified adviser before you can transfer DB pensions worth £30,000 or more.

Deciding whether to transfer out of a DB scheme is one of the most complex financial decisions you may have to make. It is vital that you seek professional advice, so that you are protected and well informed to help make the best decision for you.

Montfort International is an independent FCA regulated firm which specialises in global financial planning and has the technical expertise and experience to provide advice on DB Pension Transfers not only to UK nationals but also expatriates.

“At Montfort International, we take a holistic approach to financial planning and ensure that all aspects of a client’s situation are taken into consideration before making any recommendations”, comments Montfort Adviser, Carole Maeers.

The directors and staff at Montfort International are committed to providing the highest standard of impartial financial advice and we charge an upfront fee for a financial planning report, agreed in advance with the client. The cost of this depends on the complexity and the work involved, not the outcome of the advice. Our financial reports undergo a robust peer checking process to ensure we maintain this high standard. If a client asks us to implement the advice in the report, then we would charge an implementation fee which is a percentage of the fund. The same applies if the client wishes to receive ongoing servicing and the percentage will be based on the level of servicing they require.

If you would like to arrange a no obligation consultation with one of our Advisers please contact us via email or call 01483 202072.

The views and opinions expressed herein, which are subject to change without notice, are those of the issuer at the time of publication. This is a marketing communication issued by Montfort International Ltd, Independent Financial Advisers, authorised and regulated by the Financial Conduct Authority, reference 181199. Company registration number: 3131722. VAT Number: 753 0108 65. Registered Office: Home Farm, Shere Road, Albury, Surrey. GU5 9BL

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Montfort were incredibly helpful during our move to Spain. The team took the time to explain everything to ensure we could act quickly on their advice. I was really impressed with the end report which gave us clear guidelines on managing our pensions, income, residency and setting up bank accounts, everything! We would not hesitate to recommend Montfort again.

Ms S. Stienen-Durand Spain - 2016

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