Pension Cost Comparison (OCF v OCF or OCF v MIFID II charges)

Hi All,

When transferring from a pension which holds pension funds (therefore not in scope of MIFID II costs & charges), what do people generally do in terms of a cost comparison when transferring to a platform pension holding OEICS?

Do you use:

1) OCF (existing) v OCF (new pension)

or

2) OCF (existing) v MIFID II charges (new pension)

I'm currently doing 2 (OCF v MIFID) but thinking that it's not really a fair comparison and not "like for like". I'm not sure what the regulator says about this though so was wondering what other people do.

Thanks in advance

Comments

  • benjaminfabibenjaminfabi Moderator
    Hi

    I do all known costs on each side. I know it isn't necessarily like for like.

    I don't think it's right to deliberately withhold known costs from a comparison to a proposed alternative. If it is more expensive, I use a statement about cost transparency in support of the new plan.
    Benjamin Fabi FPFS
    Chartered Financial Planner
  • MosherMosher Member

    Agreed, I do one comparison using all the charges I know to exist. Best endeavours and all that. I think the way you're doing it is spot on.

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