What is this holding account?

By THIS IS MONEY
Updated:

 

In 1991 I was advised to move my pension from a company scheme to a private pension with Scottish Equitable. In February this year I requested that they carry out a review of this to comply with government requirements. They advised me that it would take up to six months to complete and that during this period I was advised to move my pension funds into a holding account. Is this the usual procedure and will I still get the six months interest on this policy? What should I do? RM, Grimsby.

Lee Robertson of independent financial advisers Capulet which specialises in pensions says: I am mystified as to why you should be advised to move the funds. I checked with Scottish Equitable and so are they.

If the pension was sold to you by a Scottish Equitable representative (not likely as there are not many), contact the company for advice.

If not, you should be dealing with the independent financial adviser that sold it to you. Ask the IFA why he or she is recommending you put the money into a holding account as there should be no reason to do so. If he/she still insists it is necessary ask for a written explanation and check it out with Scottish Equitable and the Financial Services Authority (FSA) helpline on pensions reviews on 0800 003 007.

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