600 firms committed to PFS DB Pension Transfer good practice standards
30 May 2019
More than 600 firms have signed up to the new Pension Transfer Gold Standard for good practice standards in managing Defined Benefit transfers.
Launched on 9 April by the Pensions Advice Taskforce, the Gold Standard centres around a consumer guide designed to help the public better understand what to expect from a regulated financial adviser when pursuing their rights introduced by the Pension Freedoms.
The new standard and consumer guide are the result of a cross-sector collaboration which included financial advisers, PI insurers, consumer bodies, and scheme trustees, working together with a common objective to deliver better consumer outcomes and ultimately address some of the concerns highlighted by the British Steel review.
David Bunkle, a partner at Aon said: “We think that anything which drives adoption of best practice across the advice community and helps pension scheme members to access high quality advice is a good thing. It is good to see this initiative taking off and we expect our clients will be keen to note that IFAs have the Gold Standard.”
The guide defines an adviser code which incorporates nine key principles of good practice for when advising on pension transfers. These nine key principles are:
1. Helping clients understand when advice is appropriate
2. Ensuring advice given supports the client’s overall wellbeing in the context of their stated objectives
3. Ensuring client understanding and acceptance of all charges
4. Ensuring the most appropriate and updated technical skills are applied
5. Transparent management of Conflicts of Interest
6. Helping clients understanding the cost of transferring benefits
7. Avoiding unregulated investments and introducers
8. Transparency in advice processes and outcomes
9. Promoting the Consumer Guide to the Pension Transfer Gold Standard
Keith Richards, CEO of The Personal Finance Society and chair of the Pension Advice Taskforce (pictured), said: “The overwhelming response and support of the Gold Standard represents the professionalism of the majority who are passionate about their profession, but who also recognise that we need to be more united behind the best outcomes for the public, not just the clients who already trust us.”
More information about the PFS’s Pensions Advice Taskforce can be found here: www.thepfs.org/ptgs
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