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Rigorous rules see OMW and CII partner on pension transfers

Tougher rules and a 100% increase in pension transfer enquiries has prompted Old Mutual Wealth (OMW) to launch a DB to DC pension transfer training programme in partnership with the Chartered Insurance Institute (CII).


The programme launch is in response to growing demand and evolving regulatory hurdles in the wake of pension freedoms.

Since August last year, pension transfer valuation queries to OMW have doubled.

To help authorised advisers cope with the increasing demand in the face of new regulatory requirements, OWM and the CII are offering training that will help pension transfer specialists manage the risks within their DB transfer advice processes.

The programme covers best practice steps for a robust DB to DC transfer process and will be a series of training events starting on 2 October 2017.

Assumptions around best interests

The Financial Conduct Authority (FCA) has proposed a range of measures to make pension transfer advice more rigorous.

These measures include a change to the starting assumption when advising on a transfer and an obligation to provide pension transfer customers with a personal recommendation.

Currently, advisers have to assume that a transfer is unsuitable and the FCA is considering changing this to state that for most people retaining safeguarded benefits will likely be in the customer’s best interests.

The UK watchdog has also proposed a requirement that all transfer customers must receive a personal recommendation.

In its official response to the FCA consultation, Old Mutual Wealth agreed and noted there is significant risk to consumers if advice does not take into account the individual’s personal circumstances.

Mainstream topic

Scott Goodsir, managing director of UK distribution at OMW, said: “Pension transfers have fast become a mainstream topic for consumers and current market practices are under review by the regulator.

“This is an area where the help of a financial adviser is absolutely invaluable, as people need high quality and suitable advice, not just for today, but for their long-term future.”

Earlier this week the Chartered Institute for Securities & Investment (Cisi) received approval for a level 6 certificate in pension transfers and planning

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