FSA guidance on ETV exercises 'out of date'

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...