Intelligent Pensions targets IFAs with drawdown service

Intelligent Pensions has launched a business which takes over the ongoing advice of IFAs' drawdown clients which they can no longer service.

The specialist pension advice firm has launched a The Drawdown Partnership in response to the retail distribution review (RDR), which increases advisers' obligation to provide ongoing service to clients.

IFAs transfer drawdown clients to Intelligent Pensions which designs and manages individual client portfolios, taking full compliance responsibility, as well as providing ongoing investment advice on drawdown. The IFA acts as an non-advisory ‘investment agent’ processing clients’ investment instructions covering purchases, sales and switches.

David Trenner (pictured), technical director at Intelligent Pensions, said the service would be help advisers who have inherited renewed commission products.

‘There are many IFAs out there who do not routinely give drawdown advice but have taken on clients who have been sold products with renewal commission. RDR requires them to give an ongoing service in return for that commission and they might be happier giving that to us,’ said Trenner.

'In many cases where an adviser is using a seperate investment manager, the investment manager won't give pensions advice but the adviser might see something like buying an annuity as an investment decison. So theres a gap we think we could fill.'

The service incorporates the firm’s WebEX system which allows clients and their advisers to speak regularly with each other online.

‘The IFA is not just an introducer and they still have to have an ongoing involvement. The other thing is that it is important we work in partnership with other advisers. I don’t know where the drawdown business is or how to access it so I need to work with other people,’ added Trenner.

Total running costs, including fund management charges, will be capped at 1.75 % per annum of which 0.5 % p.a. will be paid to the introducing IFA.

The scheme includes a free of charge conversion to a low cost Sipp plan for advisers which already have clients in drawdown.