Introducers and DB Advice

With the DB market getting smaller and more and more firms giving up their DB permissions, the question arises of ‘what if my client asks me to advise on their DB pension?’

Well, this is where the 2-adviser model comes in, where different advisers give advice on the DB transfer and the other on any remaining investment advice.

There are, however, a few things that you need to consider…

Carrying out due diligence

Before even starting on the advice process, you will need to carry out thorough due diligence (if you haven’t already) on firms with DB permissions who are willing to accept the 2 model advice process.  It is important that you complete a full review to select one or more that you know and especially trust. In your checks we would expect you check their PII cover to ensure this is sufficient, ask to see their complaints registers and to see and understand their end to end client engagement and advice processes.

Introducer agreements

It is also important that you have an introducer agreement in place to capture this.  An introducer needs to show the clear definition of how the roles of the two advisers will work as well as their respective charging structures, and how it would apply if a future complaint was made about the services provided by either of the firms.  As clients of Apricity, we will check these agreements for you.

Triage  

As a firm without DB permissions, you can agree to either complete a Triage with your existing clients as you will not be providing them with any advice. There are providers out there that can help you, such as Money Alive. Alternatively, you may choose to hand over this to the authorised firm.

Ongoing fees

If you are taking over the ongoing support after the recommendation, the authorised firm will need to be aware of your ongoing fees to be able to include these in the report and provide the client with a clear and fair analysis of the transfer and the costs of this. They must clearly state that this is your ongoing fee and not theirs.

Introducers and DB Advice