I am an accountant/bookkeeeper and was approached by one of my clients to introduce my other clients to them whom have got pensions that they are no longer paying into and then transfer them to a pension that will give a minimum of 10% return. The pension company concerned is fully supported by Helvita a Swiss Trust company who have traded for over ten years.
For every pension fund that is transferred I receive 5% commission for a maximum of two hours work.
The way I see it if a client has a pension that is not doing anything and in most cases losing value what exactly have they got to lose.
If interested in becoming a pension introducer please reply for any further information.
Don't you need to be registered as a financial advisor to offer pensions related services? (including introductions).
A swiss trust company would be non EU and we all remember the tears before bedtime the last time there was mass investment in a safe as houses non EU country (the collapse of the Icelandic banks).
Also add to that that in Pension terms a ten year old company is basically a baby so I would be careful before agreeing to introduce your other clients to your client offering non EU pension products.
Just a word of caution as I know that sometimes the bottom line can sound tempting and it's easy to jump and miss some of the questions that you should perhaps ask.
Personally haveing worked on the financial systems of several pension companies there is only one Scottish one that I would entrust with my money. I'm not going to drop names but suffice to say that they've been around for a couple of hundred years and know what they are about.
Welcome to the forum and hope my pesimistic reply doesn't make you feel unwelcome. It's skepitism at the product and not aimed towards yourself.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks for your interesting reply and I have heard it all before.
I am not selling pensions or advising people I am merely telling them about the product and leaving it up to them to decide. Some do some don't, I work on a take if or leave it basis. If one individual is not interested then I just move on to the next one who is.
I would not risk a client's big pension pot but if a client has for example £3,500 in a pension pot and on retirement will be getting next to nothing anyway is it not work the risk of bettering that pension pot?
The pensions that we are offering are occupational schemes and are not or do not need to be regulated by the FSA but they are regulated by the pension provider and registered with HM Revenue and Customs.
These occupational schemes have lighter compliance issues because of the small, self administered nature of these schmes.
Therefore, the Trustees of the scheme are responsible for the proper conduct of the scheme
The Trustees must observe all of the Finance Acts, Pension Act and other relevant legislation, including HMRC rules and regulations
The scheme must comply with the Pension Regulator's rules
I would never consider doing something which my clients could (rightly or wrongly) interpret as giving financial advice.
You believe that you are merely mentioning the schemes existance. But if they interpret that as you advising them to use the scheme then you could be in a whole heap of trouble. The client could well complain to the FSA, and its irrelevant what decision they make; you're reputation is already affected. They could agree that your clients interpretation is fair (esp as you are being paid for making the introduction - I don't think that the defence that you're merely telling the client about a product is a legally accepted one anymore, but am not an expert ) or they could agree with you; either way your name could be mud. For me, it just wouldn't be worth the reputatational risk.
Well, think you got two logical, well considered replies.
What you do with them is completely down to you but I would say that you won't get any takers from this site as we're a pretty careful lot when it comes to offering advice or products to our clients.
You say in your reply to me that you've heard it all before. Think that there's a good reason for that.
Just to emphasise again though. In a world where even serious financial institutions are not immune to coming crashing down the product that you are saying is a good one is from a non EU business that is only ten years old... My fridge is older than that!
Also, whilst it may just be coincidence the companies chosen a name very, very similar to a 150 year old Swiss insurance and Pensions company. (That must ring warning bells!).
Anyway, your business, your risk assessment, your decision.
As for us though, even without futher investigation beyond the information that you have already provided I would advise our readership to give this opportunity a very wide berth.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks for your interesting reply and I have heard it all before.
I am not selling pensions or advising people I am merely telling them about the product and leaving it up to them to decide. Some do some don't, I work on a take if or leave it basis. If one individual is not interested then I just move on to the next one who is.
You asked if anyone was interested in becoming an introducer and talk about receiving commission payments. My knowledge about regulation isn't enitrely up to date so I may be wrong, but I'd be very surprised if you shouldn't be registered as an introducer to do what you're doing, especially with all the changes that are coming in to regulated financial services soon.
