IFAs should manage their expectations about how much a defined benefit transfers template will improve the market, The Pensions Regulator says, but a good practice guide will offer a useful “starting point”.
In a speech to delegates at Money Marketing’s annual Retirement Summit today, TPR’s head of policy Fiona Frobisher gave an update on a number of initiatives that are in the pipeline.
She confirmed a template designed to help scheme administrators and advisers process defined benefit transfers will be released on 8 July.
This has been designed by the Pension Administration Standards Association as part of a broader code of good practice on DB to defined contribution transfers, but will not be joint branded by TPR and the FCA as originally intended due to administration and process issues.
Frobisher put the release of the guide in the broader context of TPR’s joint strategy with the FCA and lessons it has learned from the British Steel Pension Scheme saga.
She said: “Advisers and pension scheme administrators live in two different worlds. Administrators are doing things on a shoestring and pensions administration does not make much money. It is very process driven while advisers do more bespoke things for clients. That is why we thought there is a need for an information template.
“I suspect it will not fit all of advisers’ needs but at least you will have a standard set of information on transfers to start with. It is about giving members and savers a better awareness of their options before anything happens.”