The Financial Conduct Authority (FCA) is reviewing the context of the pension transfer specialist examination standard, due to recent developments in this area.
Besides the recent case with the British Steel Pension Scheme – which saw nine firms stopping providing advice on pension transfers after regulatory intervention – the feedback received to consultation paper CP17/16, Advising on Pension Transfers, has also prompted the watchdog to review the standards of the ApEx 21 exam, FTAdviser understands.
The draft rules of this consultation, published in June, suggest replacing the current transfer value analysis (TVAS) with a requirement to undertake appropriate analysis of the client's options - an 'appropriate pension transfer analysis' or Apta.
A policy statement on this change is expected in the first quarter of 2018.
The FCA doesn't offer qualifications – these are available through qualification providers and some training companies – but it plays a role in setting standards for examinations.
The regulator reviews the exams standards every three to five years based on need, the watchdog said.
The City watchdog has set up a working group to review the standards of the exam, primarily comprising representatives from training organisations, which have been involved in similar evaluations previously.
FTAdviser understands that if a decision to update the pension transfer exam standards is made, the regulator will follow its normal consultation process with the wider industry.
The regulator has also announced that it will be collecting data from all financial advice firms which hold pension transfer permissions during this year.
maria.espadinha@ft.com
