Defined Benefit  

FCA clarifies pension guidance boundaries

Research published last month by Royal London showed that more than two thirds of advice firms have an initial triage process for DB pension transfers, but the approach "varies hugely" across the market.

Other proposals made in March will be introduced over the next two years, the FCA said.

From October 2020 onwards, pension advisers must hold the Level 4 post-Retail Distribution Review qualifications for advising on investments - as well as a specific pension transfer qualification - before they can advise on or check pension transfer advice.

The requirement for advisers to provide clients with suitability reports even if the recommendation is not to transfer as come into force as of today.

Change

Date

Suitability reports for all advice

4 October 2018

Guidance on assessing attitude to transfer risk

4 October 2018

Guidance on working with another adviser

4 October 2018

Perimeter guidance on triage services 

1 January 2019

Updated assumptions to use when revaluing benefits

6 April 2019

Updated pension increase assumptions

6 April 2019

New qualification requirements

1 October 2020

maria.espadinha@ft.com