The Chartered Insurance Institute is launching a new pension transfers qualification following the FCA’s proposals to change the rules relating to pension transfer advice.
The level four certificate in pension transfers advice includes a new level six unit, pension transfers, which will open in August.
It also includes three existing level four units: financial services regulation and ethics, investment principles and risk, and pensions and retirement planning.
Seven thousand CII members with statements of professional standing are qualified to give pension transfer advice through either the withdrawn pensions unit G60 or the current pension planning unit AF3.
Advisers who have a CII diploma in financial planning but have not completed those two units just need to complete the new level six unit to become a qualified pension transfer specialist.
The FCA published its retirement outcomes review this week, which showed the proportion of savers going into non-advised drawdown increased from 5 per cent to 30 per cent since pension freedoms.
FCA proposes scrapping assumption DB transfers are unsuitableCII managing director of engagement and Personal Finance Society chief executive Keith Richards says: “The transfer of safeguarded benefits is an increasingly complex area, and so in the interests of consumers and the advice profession, we support the FCA’s renewed focus on the qualifications, experience and continuing professional development requirements for pension transfer specialists.
“Our new dedicated pension transfer exam unit is client focused, and has been developed in the spirit of the FCA’s current consultation, which we will formally respond to.”
The CII will also introduce a new level six advanced diploma unit retirement income planning in October 2017. Together, the two new units will replace AF3, which will be withdrawn in April 2018.