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Simplybiz adds new DB transfer partner as ‘viable alternative’ to Selectapension

The new bureau will operate in addition to the existing agreement Simplybiz has with Selectapension

Timmins-Matt-SimplyBiz-2015
Simplybiz Group chief executive Matt Timmins

Simplybiz Group has partnered with Creative Wealth Management to offer its members access to a new DB pension transfer bureau on top of the existing agreement it has with the temporarily suspended Selectapension service.

The service will be available immediately.

Money Marketing revealed earlier this month that Selectapension was suspending its DB transfer service, Selectapension Bureau Services, following an FCA audit of its outsourced advice provider, CFPML.

Creative Wealth Management is part of financial planning firm Creative Benefits, which also offers employee benefits and auto-enrolment advice.

For DB transfers, Creative Wealth Management charges:

  • 2.5 per cent for the first £250,000
  • 2 per cent for the next £250,000
  • 1.5 per cent for the next £500,000
  • 1 per cent for more than £1m

The costs are subject to a minimum £3,000 fee.

Simplybiz Group chief executive Matt Timmins says: “The Creative Wealth Management service is in addition to our existing solution with Selectapension. The group wanted to ensure it offered advisers a viable alternative and, as we have worked successfully with Creative previously when building our workplace solutions proposition, we are confident that it will provide a reliable and efficient service.”

Creative Wealth Management managing director Craig Harrison says: “We are delighted to have been chosen to provide our services to the SimplyBiz Group and we look forward to helping members with any enquiries they may have.”

Through the deal with Selectapension, Simplybiz gets access to an outsourced bureau that runs pension transfers for Simplybiz advisers. Advisers get 40 per cent of the fee payable if the transfer goes ahead.

After the suspension of service was revealed, Simplybiz compliance director Gary Kershaw said: “Selectapension has done this just to catch up on workloads. We have got no reason to not have a relationship with them. It’s got nothing to do with the request from the FCA whatsoever.”

A total of 92 firms have been part of the FCA’s review of DB transfer advice, with around 10 visited by the regulator.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Ouuch when you see these charges.
    The minimum of £3,000 ok there is work to do and risk in the assignment.
    A transfer of 700,000 charge £14,250, then I presume (yes I know I shouldn’t but I am probably right a 1% on going fee for the adviser looking after the fund) as such in the first 12 months they will have taken £21,000 out of the clients pension pot ! draw your own conclusions here whether this is fair and equitable.
    wow I will be keeping this for article price comparison.
    This I presume is focused advice without any cash flow, wider financial planning.
    As a compliance provider you would think that they would be leading by example and a setting a fixed fee non contingent charge.
    This is setting up a process with high monetary incentive all along the chain to persuade the client to transfer funds.
    The introducing financial adviser as no liability but a financial incentive to encourage the client to transfer.
    whose comes first here advise chain rewards and income, or client outcomes.

  2. This does look rather expensive – and no mention of any remuneration to the introducing Advisor.

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