UK-based Age Partnership warned that more clients are approaching the business on the back of failed transactions through IFAs who do not have the appropriate permissions in place.
This, it said, was putting customers at risk of unexpected delays, and causing advisers to lose business.
However, Age Partnership also said there is a growing number of direct referrals from advisers who recognise their limited capacity or lack of permissions.
New rule
From 6 April, pension transfers from defined benefit (DB) schemes of £30,000 or more can only be signed off by an adviser with a Financial Conduct Authority-accredited pension transfer specialist qualification.
This new rule was implemented to ensure pension holders taking advantage of the UK’s new freedoms are given suitable advice.
Glut of demand
The retirement specialist said there is a “glut of demand” for this kind of financial advice, as well as a lack of qualified advisers who want the business.
“The pensions industry has seen a step change over the last twelve months with the introduction of the pension freedoms, but there are still a few crinkles to be ironed out in terms of the implementation,” said Howard Hill, pension income expert at Age Partnership.
“Advisers have been adjusting to the changes quickly and professionally, but there is still a knowledge gap about the subtleties of advising on DB to DC transfers and conversions.”
In dispute
However, Garry Heath director general of the adviser trade association Libertatem, disputed the findings.
“An IFA might assemble the information then hand it on to someone else, but I can’t believe IFAs are trying – and it would be very stupid if they were – to sign off a pension transfer without the right permissions,” he said.
“Advisers should know what the right qualifications are; I don’t think there’s any secret to it.”
However, Heath agreed that some IFAs now avoid dealing with pension transfers or drawdowns, either because they do not have the right permissions, or because it is an area of expertise left to those specialising in it.
