A St James’s Place (SJP) adviser advertises his pension transfer services to British Airways pilots via an online banner on a private website only accessible by pilots, it has emerged.
A letter from SJP chief executive Andrew Croft to Work and Pensions Committee chair Frank Field published today revealed details of the advice giant’s relationship with the British Airways (BA) pension scheme.
Croft revealed one adviser at the firm had developed a “very close working relationship” with BA pilots, having first begun working with them in 2002. Through client referrals, he has since worked with a number of BA pilots and their families.
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The adviser in question has also used other strategies to market to BA pilots, including advertising on ‘Fleetlist’, an online service that allows flight crew to swap schedules with other pilots.
It is only accessible to other BA pilots but allows organisations to advertise via an online banner. The SJP adviser uses this facility to provide links back to his own SJP microsite, where there are details of pension and taxation seminars.
Earlier this year, SJP came under fire for its relationship with the BA scheme and was described as being “very active” in promoting cash-equivalent transfers by Trades Union Congress policy officer Tim Sharp.
The first BA pilot briefings with SJP date back to 2009, and became known primarily through word of mouth, Croft explained. Since 2009, there have been 44 pensions and taxation briefings run by the adviser, which have been attended by some 353 different BA pilots and senior managers.
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Of those, 58 (16%) of attendees have subsequently arranged a transfer through SJP, with 7% transferring within a year of attending the seminar.
During the seminars, the adviser covers information on annual allowance charges as well as lifetime allowance calculations, Croft said. The sessions also include information on the advantages of remaining in the BA pension scheme.
The seminars take place in the Hyatt Place Hotel and, although the scheme trustees are “most likely aware of the briefings”, Croft added, there is no formal arrangement between SJP and BA.
Proximity to business matters
A letter from Tideway managing partner James Baxter to Field, also published today, revealed Tideway selects the placement of its pension transfer seminars according to proximity of workplaces with high concentrations of DB pension scheme members.
“If we have received multiple enquiries from a particular scheme and there is strong demand for guidance on the transfer options, we have from time to time presented DB transfer seminars at venues that are easily accessible to those individuals in those schemes,” Baxter wrote.
Otherwise, he said, Tideway picks its seminar locations throughout the country near to major cities, such as Bristol, Manchester and London.
Baxter also gave details of the number of attendees that subsequently decide to transfer. So far, some 400 people have attended from various schemes, with around 15% of attendees going on to transfer their pension with Tideway.
Like SJP, Tideway also includes information on the risks of transferring away from a DB pension during its seminars, Baxter said.
Last month, Sharp had also accused Tideway of proactively contacting workers at EDF and Magnox. In his letter, Baxter hit back at accusations, pointing out 26 EDF members and three Magnox members were transferring with Tideway.