FCA Has Requested Adviser Files On Defined Benefit Pension Transfers

​The FCA is investigating firms’ approach to defined benefit pension transfers.

18/04/2017

The FCA is investigating firms’ approach to defined benefit pension transfers.

Since the beginning of 2017, the regulator has submitted a number of data requests regarding DB transfers to financial advice firms, targeting those which are conducting increased levels of business in this area.

Although the FCA has said it is not currently planning to conduct a thematic review on DB transfers, their increased interest indicates that the regulator is hoping to obtain a greater understanding of the DB market.

Former FCA Technical Specialist, Rory Percival has commented that he anticipates there will be an increase in the number of data requests in this area. He told Money Marketing: “I wouldn’t be surprised if there was now a regular data request on pension freedoms where [the FCA requires] information, particularly on DB transfers.”

What should you do next?

With scrutiny set to increase for advisers operating in this area, you would be well-advised to conduct an independent assessment on the appropriateness of the controls you have in place in relation to DB transfers.

By conducting an independent validation process of the reviews undertaken, you will get assurance that your in-house controls and oversight are working.

If you have any further questions about the checks you should be performing on your DB transfers, contact Bankhall for advice or to request an independent review.


Live

I wouldn’t be surprised if there was now a regular data request on pension freedoms where [the FCA requires] information, particularly on DB transfers

Rory Percival
Former FCA Technical Specialist