Fidelity sets up IFA pension referral system

Fidelity's direct arm will refer its new Personal Pension clients to local IFAs when their needs are complex enough to require advice, the group announced today.

Clients will be given a list of five IFA firms in their area drawn from Fidelity FundsNetwork's user base.

The Personal Pension from Fidelity is a low-cost pension (a version of the FundsNetwork SIPP provided by Standard Life) which is intended to compete with similar execution-only offerings. It will accept new investments and transfers from other personal pensions and SIPPs into the range of mutual funds available via Fidelity FundsNetwork.

However, investors with more complex needs and those who are not comfortable with making their own decisions will not be eligible for the Personal Pension and will be referred to local advisers.

Those needs include:

Transfers from employer-sponsored pension schemes Drawdown Non-mutual fund investments through the SIPP

Richard Wastcoat, UK managing director at Fidelity International, comments: "There is a group of investors who want to look after their own retirement planning and investment portfolios. Our direct business caters for their needs. But we also recognise that many- if not most - investors do require advice at times, particularly in the complex field of pension transfers.

"This is exactly why we have established this IFA referral process. Hopefully, together we can raise the overall amount that individuals set aside for retirement by ensuring that those who need advice receive it, while also providing a service for the self-directed investor."