The FCA will collect information about which schemes are receiving defined benefit transfers as part of its effort to monitor the market better Money Marketing can reveal.
Last December a Freedom of Information Act request from Money Marketing revealed the FCA was in the process of setting up a central database on firms involved in DB transfers.
It said this stemmed from the lessons learned in relation to the British Steel Pension Scheme and unsuitable transfer advice.
The watchdog decided a central database would allow it to “amalgamate data from a variety of sources to provide a better view on which firms are active in the market”.
Now a follow up Freedom of Information Act request from Money Marketing sheds light on the sort of information the database will be gathering.
In terms of the sources for the database, the FCA is collecting pension provider product sales data, data from the retirement income data request introduced at the time of the pension freedoms, and transfer data from trustees.
It is also relying on intelligence gathered internally and externally, firm case work and the joint FCA/Pensions Advisory Service protocol working group.
Regarding the categories of data the FCA is interested in, the volume, value and date of transfers will be placed alongside details about the receiving scheme.
It also wants the name or reference number of the advice firms involved in transfers.
The regulator estimates it took 35 hours to set up the database. There is no specific launch date for the database, which has been in development since June 2018.
It adds both the number of staff working on the database and their time devoted to this work will vary as this will depend on the data received.
The FCA’s retail investments department is responsible for the database and no additional money has been allocated to it outside of business as usual spending.