IFAs will not have to hold a G60 qualification when advising clients on enhanced protection, even though it could effectively force clients to leave their corporate pension schemes.
Speaking at Scottish Equitable's pensions roadshows in London yesterday, pensions development director Stewart Ritchie told intermediaries they will not have to have passed the G60 examination when giving advice on enhanced protection.
This protection option is one of the transitional arrangements offered by the Inland Revenue as a part of the new pensions simplification rules coming into effect on 5 April 2006.
It will give people full protection from the recovery charge on the fund at vesting. But at the same time, all pension accrual must cease when the new rules come into force, forcing pension scheme members to opt out of their schemes.
The G60 exam was specifically designed to ensure advisers had the neccesary qualification to complete pension transfers from company schemes to personal pensions, in light of the pensions mis-selling scandal in the late 80s and 90s, which saw consumers moves from occupational pension arrangements to less-beneficial personal pensions.
However, the FSA believes advising about enhanced protection will not count as an 'opt-out'. This effectively means the intermediary will not be required to have a G60 qualification under their belts, Ritchie said.
That said, Scot Eq's pensions development manager Rachel Vahey added she cannot see how advisers will be able to give proper advice on the changes facing the world of pensions without having acquired the G60 qualification.IFAonline
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