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Prouty99

Clerical Medical Mis-selling query

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Now I have all of the old paperwork out, I have found a forgotten clerical medical pension that I have that seems a bit dodgy to me.

 

Brief history of the policy;

 

Originally taken out with United friendly in the 80's, who were then bought out or merged at a later date with Royal London. This is /was a mutual with profits.

 

In 2007 I was contacted by an independent financial advisor who said he would take a look at the pension as I was considering transferring the pension to an occupational scheme.

 

The advisor advised me to transfer the existing funds (admittedly not much at the time) into a clerical medical personal pension plan as it would be 'a better option' and 'pay a better amount in the long term'

 

Firstly, CM have never contacted me for a review from 2007 to 2015 (considering the volatility of pensions this seems dodgy)

 

Secondly, as far as I can make out the transfer fee was £4k

 

Two things stand out in the small print on the initial review documents;

 

Assumed growth rates: "Compared with your current plan, the new Clerical Medical plan would reduce your fund by 17.8%

 

Minimum transfer accepted

 

You do not have a particularly large transfer value to invest for your retirement, and so you need a plan which will accept a low minimum stand alone single premium

 

Unfortunately, this plan has one of the highest on the market

 

Policy Fee

 

You should choose a plan with a competitive policy fee

 

Unfortunately this monthly policy fee for this plan is above average compared to other plans on the market.

 

One off installation fee

 

You should choose a plan that has a competitive stand alone administration fee, if at all

 

Unfortunately, one of the highest fees applies to this plan.

 

I went with his advice at the time, and forgot about the pension as I later joined the company scheme anyway,

and just never paid anything else into the private one, but

 

 

over the last couple of weeks I have been tracing things including this and after reading the small print it seems like I was really stiffed on this policy.

 

Luckily I still have all of the paperwork for this one, including 'independent review paperwork' with the name of the advisor should I have any grounds to take this further.

 

Why would someone strongly advise a policy that costs 4K, and loses 17.8% ?

 

I wasn't aware that pension policies charge a monthly fee either (£40 per annum), or installation fee (£100).

 

Thoughts anyone ?

 

Just to add to that, if you read the other thread

http://www.consumeractiongroup.co.uk/forum/showthread.php?444060-Tibbett-and-Britten-group-workplace-pensionpost I made about the Tibbett & Britten pension scheme,

this is the scheme which I was considering transferring the funds to, and it was a final salary scheme,

 

so I guess it was a foolish thing to do by not transferring into a company scheme at the time,

but the way things turned out the final salary scheme was wound up in 2012,

so in hindsight a stupid decision, and bad advice at the time has actually turned out to be a decision that has worked out I guess.

 

At the point of sale though it was stupid advice, and a stupid move for me to believe that advice.


If you cannot take on a problem head on, go around the sides, over the top, or underneath. If you still have problems, then change the rules. If you can't change the rules then manipulate yourself into a position where you make the rules.

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Again, speak to the PAS as you may well have a cliam against the IFA/broker if they are still in business. Your problem is trying to assess what exactly your losses were/are going to be as your other scheme is not easy to calculate the benefits due. Expect it to take at least 2 years to get anywhere

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