FSA guidance on giving pensions transfer advice to members of defined benefit occupational pension schemes as part of an enhanced transfer value (ETV) exercise is out of date, consultancy Aon Hewitt says.
In transfer exercises, the schemes' sponsoring employers offer members the chance to transfer their benefits out to another scheme and will usually pay an enhancement or incentive to encourage them to do so. Alan Howard, part of the firm's liability management team, said new guidance needed to cover both ETVs and all types of incentive to transfer exercises, including pension increase changes, total PIE and flexible drawdown. These changes would help tighten up the advice process and reflect changing market conditions and practices, he said. "Financial advice is clearly important a...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes