Pension scheme trustees should actively engage financial advisers if members are looking to transfer out of their defined benefit arrangements and washing their hands of the process does not eliminate risk, a study has found.
Pensions lawyers Eversheds Sutherland and mutual insurer Royal London looked at pension trustees' approach to engaging advisers in defined benefit (DB) transfers since the introduction of pensions freedom. Financial Conduct Authority (FCA) figures show from April 2015 to September 2018 some 230,0000 DB pension scheme members were advised on transfers, with an average transfer value of £350,000. Trustees may show a reluctance to step in due to their potential liability if something goes awry, but evidence has shown there is a need to help members gain access to high quality advice, the...
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