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Below are some the most Frequently Asked Questions about Transfer Adviser - IFA Queries.
Will I retain my client?
Whilst O&M must take over your client to be able to act for them in respect of their Pension Transfer, this is the only advice we will be involved in. The introducer’s agreement incorporates a no cross-sell guarantee and you can still act for your client in the usual way for their ordinary financial planning. [Top of Page]
Can I take over the client servicing once the advice has been given?
Once the policy has been issued and the commission paid to you, you are free to take over the ongoing servicing for your client if you wish to. [Top of Page]
Who decides whether O&M act on a fee or commission basis?
The client does; however, the Introducer can influence this to some degree. For example, a fee based Introducer might reassure his client that O&M will act for them on a fee basis. However, a predominantly commission based Introducer might use the fact that there are no fees, to encourage their client to seek advice from O&M. It is important to note that we must act in accordance with the client’s wishes, rather than those of the Introducer. [Top of Page]
Is there a cap on the amount of commission that can be taken?
There is no specific cap but on larger cases, it is likely that some commission will be rebated back into the policy. [Top of Page]
I have used the O&M Transfer Bureau in the past, why do I need Transfer Adviser?
The regulatory requirements have increased and Professional Indemnity insurance is more difficult to obtain, therefore, a number of advisers have decided to refer clients rather than use the Transfer Bureau and give the advice themselves. [Top of Page]
I have used the O&M Transfer Bureau in the past; do I have to re-register for Case Tracker?
No, the Case Tracker facility designed originally for the Transfer Bureau, has been enhanced to track Transfer Adviser cases as well. [Top of Page]
Can I take Fund Based Commission?
It is possible for you the Introducer to take fund based commission, however O&M’s share of the commission will still be taken as initial commission. The introducer will not be able to take initial commission plus fund based commission on top.
Once the case has been completed, the case can be transferred back to the agency of the Introducer for servicing and receipt of fund based commission. [Top of Page]
If I have no contact with the scheme, how will I know what my share of commission will be?
The amount of potential commission will depend upon the size of the transfer value, which cannot be known until a transfer takes place. The rate will also vary according to the policy and product provider used. To assist you, once the transfer value has been quoted, this will be listed on the Case Tracking page of the O&M Website. [Top of Page]
Can I choose the Product Provider?
The product recommendation is part of the service provided by O&M and the Introducer does not get involved. [Top of Page]
Who introduces business to O&M?
The majority of our Introducers are IFAs and Tied Agents who are not regulated to offer Pension Transfer advice. However, many advisers who have the AF3 qualification and could give advice, refer clients to O&M as they do not get enough enquiries to establish a process for handling Transfer Advice themselves. [Top of Page]
Will I get a copy of the report and recommendation?
No, but you will find out when the advice has been given from the Case Tracker Website and this will show what the recommendation is. [Top of Page]
Can I discuss the case with the O&M adviser?
As the advice is being given by O&M you do not get involved in the advice process. However, you can keep track of it’s progress via the Case Tracker Website. [Top of Page]
How long does each case take?
The transfer advice process normally takes between one and six months to complete depending upon how helpful the scheme administrators are. To enable both you and your client to have access to the progress of the case at all times two Case Tracking websites are available. [Top of Page]
What about transfers from Personal Pensions?
This is a less heavily regulated area and it is envisaged that most advisers will deal with this on behalf of their clients. O&M have designed Pensions Profiler as a tool to help produce reports for this type of advice. [Top of Page]
Is there a minimum Transfer Value when you are working on commission?
There is no set minimum transfer value where clients ask us to work on a commission basis. However, for cases proceeding, we do expect to earn a minimum of £750 per case. In practical terms this means:
- For transfer values below £15,000, we will write to the client and ask for a fee of £500 + vat to be able to continue with the case. Most clients ask us to stop acting for them at this point, as they do not want to pay a fee.
- The commission payable on transfer values between £15,000 and £30,000 will not normally be enough for O&M to earn the minimum amount of £750. In these cases the introducer's commission will be reduced to pay O&M's minimum retention.
- Cases above £30,000 will normally produce enough commission for the introducer to earn their share and for O&M to retain the minimum retention.
NB. The £30,000 figure used is an indication, as commission rates vary from provider to provider [Top of Page]
Is there a minimum Transfer Value when you are working on fees?
For fee paying clients there is no minimum transfer value. [Top of Page]
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