This is why it is good news to hear that The Pensions Regulator has announced plans to regularly share market intelligence on defined benefit transfers with both the Financial Conduct Authority and The Pensions Advisory Service in order to help all parties involved forge a better understanding of the risks involved in a pension transfer.
According to The Pensions Regulator, the information-sharing will occur in the following ways:
- The sending of weekly reports to The Financial Conduct Authority and The Pensions Advisory Service.
- Monthly conference calls between The Financial Conduct Authority, The Pensions Advisory Service and The Pensions Regulator.
- Quarterly meetings with the Pension Protection Fund to discuss important issues as they arise.
In addition, the regulator has said that it has developed two template letters:
- One for pension scheme trustees to help them clarify their obligations.
- One for members to use at the transfer value quote stage – this will include key aspects to consider as well as information about where they can go to receive impartial guidance
Meaningful cooperation
The Pension Regulator says that when it identifies issues with a scheme, it will share the information with The Financial Conduct Authority and The Pension Advisory Service.
Furthermore, the joint protocol agreement states 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”.*
Blacktower, International Pension Transfers
If you have a defined benefit plan or other scheme and are considering the best way to manage this important asset, including the possibility of a pension transfer into a QROPS or SIPP, we can help.
Blacktower’s international pensions transfer specialists can help you decide whether a transfer is suitable for your circumstances, whatever your country of origin and current country of residence. Contact us today.
* https://www.fca.org.uk/publication/mou/fca-tpr-tpas-joint-protocol.pdf page 6
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
On Thursday the Bank of England (BOE) rate committee met to discuss interest rates, and, even though inflation is growing, yet again they have decided to leave the base rate at 0.25%. They obviously feel this is the best option as they assess the extent of any consumer slowdown and while they continue to play the waiting game regarding how the EU Brexit divorce negotiations pan out. The BOE seems to be playing a deliberate wait and see game, and with economic news continuing to be negative in the last few weeks, it now seems likely that the base rate could stay at this level until at least 2019.
Much has happened since I last put pen to paper in the immediate aftermath of the referendum result and I thought it sensible to comment on some of the issues which are emerging from the ‘swirling fog’ that we experiencing. July 24th 2016, reminded me of September 12th 2001 in New York, with people walking around in shock, confused at the attack on the political and economic system. To be angry at the shock of the unexpected result and how that might affect everyone’s life is a natural and rational response, however much it might seem otherwise. Last week I wrote that the result was not a disaster and the financial system was capable of absorbing this shock, in short, my view has not changed.