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Transfer Adviser -

Costs & Current Rates

Service Registration

To submit cases to the Transfer Adviser service you need to be a registered user. Registration is subject to a monthly retainer fee of £15 plus VAT, payable by direct debit and is subject to an initial 12 month agreement. After the initial period, 3 months written notice is required to cancel the agreement.

Introduce Clients

We operate on a pure fee based structure for clients introduced to O&M and have introduced a 3 stage process.

STAGE 1 - INITIAL REVIEW - £350+vat = £420

This stage involves generating a TVAS report and reviewing the client fact find and related information to decide whether we think a transfer is likely to be in the client's best interest. We will then generate a brief letter to the client confirming our initial view with the option for them to proceed no further. This we feel is a cost effective option when 75% of cases we recommend they remain in their existing scheme. At this stage, we have not issued full financial advice, so will NOT sign paperwork to schemes saying the member has received regulated financial advice on their options.

VAT: Our latest external advice is that stage 1 adviser charge would be chargeable to VAT at the standard rate of 20% whlst stage 2 and 3 would be exempt from VAT (as linked to intermediation)

 

STAGE 2 - FULL REGULATED ADVICE - £1000 +

This stage involves an initial telephone meeting with the client to discuss their factfind, objectives, capacity for loss and attitude to risk amongst other things. We will also fine tune the TVAS report. A full advice pack including a suitability letter and report is then issued followed up by a telephone meeting with the client to discuss the issued advice.

The actual cost of this stage is £1000 + £100 per £100k TV (to take account of the PI Insurance risk of larger cases). In addition, we may review transferring into an existing pension plan which is an additional £150. So for a £250k TV without a review of the existing plan, the cost for stage 2 will be £1200 (vat exempt).

 

STAGE 3 - IMPLEMENTATION - £250

This stage involves organising and arranging the transfer, including illustrations, pre-populated application and discharge forms along with money laundering work as required.

 

O&M can take Stage 2+3 adviser charges from the receiving pension plan

We will give the client the option, where possible, for O&M's charges for stage 2 and 3 to be taken from the new product as an adhoc / initial adviser charge as this can be more tax efficient. If this is not possible, the client will need to settle O&M's fees within 30 days of an invoice being raised.

 

Introducer Charges Client Directly for their Involvement

Under the new basis, O&M will only charge the client for work done by O&M and will not be making any payment to the introducing adviser. We expect the introducing adviser will make some charge directly to the client for any work done on the case which may include:

  • preparing and arranging the introduction to O&M
  • assisting with the fact find completion
  • reviewing O&M's advice in light of the client's wider finanical affairs
  • arranging the on going investment of any monies transferred
  • arranging the vesting of any monies transferred

 

O&M only accept referrals from registered introducing adviser firms.