The Pensions Regulator has agreed to share market intelligence on defined benefit transfers on a regular basis with the FCA and The Pensions Advisory Service so trustees can ensure members fully understand the risks involved.
In a new formal agreement, TPR will share its reports on DB market intelligence roughly every two weeks with the FCA and TPAS, while monthly conference calls will also take place between the trio.
In addition, they will meet quarterly with the Pension Protection Fund to discuss any live issues or areas of concern.
A template letter has been created for pension scheme trustees clarifying their obligations, as well as a template letter to be sent to members when they ask for a transfer value quote with important points to consider and where to seek impartial guidance.
When TPR has agreed that a pension scheme needs to be restructured, it has agreed to inform the FCA and TPAS of the key issues involved.
The deal also lists that “where the FCA wants to contact a particular pension scheme directly to get information from the trustees on financial advisory firms advising on transferring out the scheme, it will first seek TPR’s agreement.”
The document also notes this co-operation will be extended to the new Single Financial Guidance Body that incorporates TPAS once its services become operational.
The “Memorandum of Understanding” adds to similar documents signed between the FCA and other bodies such as the Financial Ombudsman Service and the Pensions Ombudsman Service in recent years.