The head of data audit and analysis at pensions firm Spence & Partners said pension trustees should not be put off by the cost of a data cleanse, as advisers don’t always highlight legacy data problems in case they “jeopardise their appointment”.
He said: “As part of the procurement process, many schemes will be offered free data cleanses and audits under the transition of scheme information between advisers. However, in lots of cases this gets parked to one side while the bigger transition takes place and never ultimately gets completed.
“The result of this is that a number of legacy data issues are transferred across to the new adviser and remain unresolved. The new adviser is often then reluctant to raise any data issues further down the line, as it would highlight the work they had not undertaken as agreed.”
Robin Keyte, director of Taunton-based Keyte Chartered Financial Planners, said: “When clients have been leaving trust-based schemes, there has been a lack of data around earnings up to April 2006 and that could mean they receive fewer cash entitlements than they deserve. So it can cause consumer detriment, not just hassle for trustees.”
