Defined Benefit  

TPR warns trustees about DB transfer activity

TPR warns trustees about DB transfer activity

The Pensions Regulator has warned the trustees of defined benefit (DB) pension schemes about being targeted by financial advisers. 

Since 1 January 2018, TPR has written 12 letters to trustees about being targeted by financial advisers who are encouraging members transfer their DB pension.

The letters were sent as a joint communication from TRP, the Financial Conduct Authority (FCA) and The Pensions Advisory Service (Tpas).

TPR has not disclosed the names of trustees that it contacted about the transfer activity.

The letters included information to be shared with members that had requested transfer values, advising them to consider the risks of taking a DB transfer.

It comes after TRP said it was working to give "timely warnings" to scheme members regarding pension transfer risks after it admitted to having not worked quick enough in light of the British Steel Scandal.

TPR has previously written to trustees of the Lloyds Banking Group pensions scheme, voicing concerns about speculation of uncertainty regarding the future of the scheme.

The watchdog has said it has no record of the trustees it contacted during 2016 about transfer activity.

TPR said: "Though we may have contacted trustees regarding similar activity during 2016-2017, we do not hold this information as we did not start recording this until 2018."

Earlier this year TPR asked trustees to report suspicious financial advisers who may have given their members information on transfer value.

The watchdog also said it would be entering a proactive relationship with the FCA and Tpas in order to best advise scheme members if making a DB transfer is not in their best interests.

In June this year, FTAdviser reported that TPR had warned members of eight DB pensions schemes about the possibility of being targeted for pension transfers.