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FSA warns of 16% commission pension transfer scheme
FSA has urged caution over a scheme advertising 16 per cent commission rates on pension transfers for people aged 55 and under.
Pension Solutions, which acts as an introducer to a panel of IFAs, released an article claiming that ‘a man with a £60,000 pension pot can earn £9,000 in commission by shifting his fund into a new pension plan.’
The firm says a fixed one-off fee of £3,750 is charged before the 16 per cent commission is paid to the customer and the commission does not come out of the client’s pension fund.
Danny Coughlan, Pension Solutions managing director declined to comment on the new fund.
An FSA spokesman said: “Anyone considering taking money from their pension by unlocking some of their retirement pot early should treat any schemes that offer the chance to do so with extreme caution.
“Anyone who accesses money from their pension, either via a loan or other ways outside of the normal allowed methods, runs the risk of having to pay unauthorised payment charges.”
For more information please contact Paul Bradshaw at McEwan Wallace Wealth Management on 0151 647 6682 or email enquiries@wallace.co.uk.
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