The winding-up of finalsalary schemes and the shift from defined-benefit to defined-contribution schemes offers IFAs significant business opportunities, according to employee benefit specialist Jardine Lloyd Thompson.
The company says the complexity of scheme termination presents IFAs with a clear opportunity to advise on employers' responsibilities.
It identifies how prompt actuarial and investment advice on the management of assets and liabilities of a wind-up as the key high-risk areas where IFAs can add value.
Jardine Lloyd Thompson is offering a windup risk analysis checklist for advisers.
Head of discontinuance services Adrian Kenett says: “The complexities of managing scheme restructures, benefit settlements, debt on employer regulations and regulatory pressure to speed up the winding-up process means that careful attention and extensive consulting is required.
“Too often, a replacement scheme has been established and the previous scheme has been left to the provider to wind up. IFAs must focus on their client responsibilities to the terminating scheme and provide valued and needed advice in this complex area.
“Regrettably, the windup landscape is littered with schemes which are significantly insolvent and as a result members' expectations are shattered.”