Leabold Pension Transfer Advice Brochure

‘DEFINED BENEFIT’
PENSION ADVICE

June 25, 2021
DEFINED BENEFIT PENSION ADVICE
Contents
Our Advice Process ........................................................................... 3
Our customer proposition for ‘Pension Transfers ................................... 6
How much does it cost? ..................................................................... 9
Financial Management Limited, registered in England and Wales. Company Registration No. 05173817. A wholly owned subsidiary of Leabold
www.leabold.co.uk Financial Management Holdings Limited, registered in England and Wales. Company Registration No. 8296996. Authorised and Regulated by 02
the Financial Conduct Authority.

June 25, 2021
DEFINED BENEFIT PENSION ADVICE
Our Advice Process
We start with an informal discussion in which we get to know you and establish
whether we are able to help you. We refer to this as 'discovery' and it is without
charge or obligation to proceed further.
Following discovery, we will undertake a further meeting at which we will explain
to you all the information necessary for you to decide if you want to engage us
to advise you. We refer to this meeting as 'triage'. This meeting is recorded with
a copy being provided to you for your future reference. If, following the meeting
you want us to act on your behalf, we will ask you to complete a formal customer
agreement.
We then collect the details from you needed to prepare our advice. Where you
hold existing financial products, we will ask you to sign authorities allowing us
to approach the scheme holding your pension entitlement as well as any
providers with whom you have private pension or investment products. We will
also establish details of your personal circumstances and financial situation as
well as your goals for retirement.
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June 25, 2021
DEFINED BENEFIT PENSION ADVICE
Once we have received all necessary information, we will then prepare our advice
and provide this to you in a formal written report setting out the following:
• Our understanding of your objectives.
• The information used to prepare our advice. Where we are advising on investments,
we will ask you to complete a ‘risk tolerance’ questionnaire so we can establish how
comfortable you are with investing. Our report will set out the results of our
assessment and explain how this has affected our recommendations.
• Clear recommendations covering each decision you will need to make, together with
an explanation of why we consider this to be the most appropriate course of action.
• Where we are recommending investments, we will set out details of the strategy you
should follow as well as the asset types and geographical sectors in which you
should invest. We will also set out both the potential for future returns on your
investments and the potential for you to incur losses if the value of investments fall.
• The future steps you will need to take in the future to ensure our advice remains
consistent with your requirements.
• Recommendations for product providers with whom you should purchase pension
plans, investments, and any other financial products. This will include an
assessment of the financial strength of the provider; cost of the product in relation
to others available in the market; and the servicing record.
• The risks of either following, or not following, our advice.
• The costs and charges you will be required to meet both for our services and those
of any recommended product providers.
• A list of supplementary documents to help you understand the background to our
advice and place you in the best position to make an informed decision.
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June 25, 2021
DEFINED BENEFIT PENSION ADVICE
When preparing our advice, we apply extensive ‘peer review’ and other internal
checks to ensure accuracy, consistency and to ensure the language used is
clear and understandable. Once a report has passed these checks, we then
issue it to you by post, giving you the opportunity to review and consider at
your own pace.
After issuing our advice, we will contact you to hold another meeting to
answer any queries and establish how you wish to proceed. After taking your
instructions, we will then arrange for the transactions you specify to be
executed.
If you require, we will then periodically review and meet with you to determine
any changes in your circumstances which might impact on our previous
advice. We will also review the position of your investments and forward to
you any critical communications from providers with whom they have been
arranged.
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June 25, 2021
DEFINED BENEFIT PENSION ADVICE
Our customer proposition for ‘Pension
Transfers
This service is suitable for
customers who require advice on whether
to transfer the value of pension benefits
built up under an employer’s occupational
pension scheme to another type of
pension arrangement.
This service is not suitable for
customers who require a transfer to be
undertaken irrespective of the risks and
consequences, or who require limited
advice.
We operate a fully non-contingent charge for this service. This means that the charge remains
the same whether we advise you to transfer your pension benefits or retain your existing
pension entitlement.
The purpose of the service is to advise you on whether your interests are best met by
transferring or retaining your pension entitlement. Critical considerations will include the extent
to which you are capable and comfortable in understanding the risks and consequences of what
is a complex and potentially risky transaction.
We will establish the value of benefits provided by the scheme and compare this against the
amount of money that the scheme would be prepared to transfer to another pension
arrangement in lieu of those benefits.
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June 25, 2021
DEFINED BENEFIT PENSION ADVICE
We will consider the extent to which a transfer might affect the value of the benefits you would
receive on retirement, as well as those that would be payable to your dependents in on your
death.
We will determine the overall level of income you may require in retirement and how this is
likely to be split between essential domestic and non-essential lifestyle related expenditure.
We then advise the earliest date at which retirement could reasonably be considered.
Where a transfer is recommended, we will advise on how a portfolio of investments can be
constructed to provide a potential for growth that is consistent with both the target retirement
income, as well as your tolerance to investment risk. We will also consider the range of
personal pension products that could be utilised to hold these investments, taking account of
the cost and requirement for flexibility.
Once our advice has been provided to you, we will meet with you and resolve any further
queries you may have.
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June 25, 2021
DEFINED BENEFIT PENSION ADVICE
Where you have asked us to provide continuing oversight, we will also:
• Forward any relevant communications received from product providers from
whom you have transferred servicing rights responsibilities to us.
• Monitor any changes in legislation, tax allowance, product terms and product
provider status and notify you where these impact on those objectives, attitude to
risk and personal circumstances you have notified to us.
• Undertake a formal review of our original advice and recommendations at
intervals of twelve months.
• Calculate and provide you with a valuation of your investments at quarterly
intervals.
• Where your pension fund is placed in a portfolio of different investments,
advise you on rebalancing your portfolio and review the suitability of each
investment in your portfolio at six monthly intervals.
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June 25, 2021
DEFINED BENEFIT PENSION ADVICE
How much does it cost?
The following charge covers the research, preparation and issuing a written report setting out
our advice and is based on your transfer value. If we recommend a transfer, it also covers our
carrying out that transaction on your behalf:
The following charge covers our continuing oversight:
1.00% per annum
• Where your transferred pension fund is
recommended into a portfolio of investments
0.50% per annum
• Where your transferred pension fund is
recommended into a single investment
Please note Our ongoing charges are subject to a minimum fee of £250 per annum.
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June 25, 2021
DEFINED BENEFIT PENSION ADVICE
As an example - Let us say you were to ask us to advise you on a transfer value of
£100,000, the cost would be:
The cost of initial advice, including any transactions you required
us to undertake, would be £2,000.
If you required us to continue overseeing your pension fund, the cost each year would
depend on how much the value of your pension fund increased (and whether it was
placed in a single investment or portfolio), for example:
If your pension fund was in a portfolio and remained at £100,000, the
cost would be £1,000.
If your pension fund was in a portfolio and grew by 5% to £105,000,
the cost would be £1,050.
If your pension fund was in a portfolio and fell by 5% to £95,000, the
cost would be £950.
Please note - You are able to cease further charges at any time, subject to
confirming this in writing to us.
Full details of the scope of our service and cost of this proposition are contained in the
‘Customer Agreement’ that will be provided to you before you agree to proceed.
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Leabold Financial
Management Ltd
Valleys Innovation Centre
Navigation Park
Abercynon
CF45 4SN
www.leabold.co.uk
Financial Management Limited, registered in England and Wales. Company Registration No. 05173817. A wholly owned subsidiary of Leabold
Financial Management Holdings Limited, registered in England and Wales. Company Registration No. 8296996. Authorised and Regulated by
the Financial Conduct Authority.