SJP stops accepting DB transfers from British Steel members

Queue-Wait-People-Lineup-Shadow-700x450.jpgSt James’s Place has confirmed it will no long accept new defined benefit pension transfer requests from British Steel members.

At a work and pensions select committee hearing this morning, it was estimated that of the 38,000 British Steel members, 12,200 have applied for a transfer value and more than 2,000 transfers have been made or are in progress.

A SJP spokesman says: “St James’s Place has decided that we will no longer be accepting new transfer requests from members of the British Steel Pension Scheme.

He adds: “However, we will continue to complete those already in the pipeline, where a recommendation to transfer was made by a St James’s Place adviser prior to 8 December.”

DB pension expert Nic Millar posted on Twitter that “this may be an area of concern because it’s left steelworkers in the lurch and it’s a ‘panic transfer’ situation waiting to happen.”

Giving evidence to MPs this morning, First Actuarial director Henry Tapper expressed fears from his visits to British Steel sites that DB transfers had been mostly made into Sipps, including funds where advisers were able to pick up a marketing fee.

A British Steel pension member also speaking at the hearing said that when he had found an adviser to transfer, he was told he could not because their compliance team had closed off to new clients because the firm was over capacity already.

Stefan Zaitschenko, another former steelwork and the co-ordinator of the BSPS Facebook group said: “Many of the IFAs have taken a view they can only deal with a certain amount of clients. The first come first served came in that the people who were there first managed to find the IFAs.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Good heavens!! You don’t mean to say they have been involved in this exercise??

  2. This tells us a great deal about SJPs concern about reputational risk.

  3. I can not see how under “treating the client fairly” it can be tenable for any Adviser Only remunerated by commission, who can only set up a Pension with an AMC of 1.85% tied in for six years with their own Tied Agents agreement could be/ should be allowed to discuss the options open to DB members. They are surly unable to review the Whole Market, or even a representation of the Market in giving all the options available, I have just witnessed a SJP adviser tell the client he was not charging for his advice as he was paid by the charges in the contact. The clients of SJP are duped by powerful advertising and Marketing and certainly not best advice. Only two words for it “Scurrilous Obfuscation”

  4. I would be pretty sure the advice will be watertight from SJP. However, its effectively contingent charging and I think that impacts upon real and perceived impartiality.

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