Bringing you live news and features since 2006 

PLSA raises concern over new DB transfer advice


The Pensions and Lifetime Savings Association (PLSA) has responded to the FCA’s consultation ‘Advising on Pension Transfers’. The Association has supported FCA proposals for more broadly-based advice to people considering a transfer out of their DB scheme – but has raised concerns about how the FCA want the information presented.

The combination of pension freedoms and high transfer values, plus increased concern over pension scams, had prompted the FCA to ask whether the current rules on advising on DB transfers are still fit for purpose.
James Walsh (pictured), Policy Lead: Engagement, EU and Regulation at the Pensions and Lifetime Savings Association, says: “The PLSA agrees with the FCA’s argument that advice should be more broadly based. It is vital that members consider their DB rights in the context of their overall circumstances, including their other assets, debts, health, family circumstances and strength of their employer. However, there is a risk that the proposed new Transfer Value Comparison (TVC), which would focus the member’s attention on a single set of figures, could inadvertently lead to people taking decisions which are, in fact, quite narrowly based.”
“Combined with the high transfer values generated by current low interest rates, this could lead to more people transferring. The TVC should be used with caution – and should be presented in the context of the full range of factors that scheme members need to consider.”
“Worryingly, one spur to activity in the DB to DC transfer area has been the increase in pension scams. Although many people are presented with transfer options quite legitimately, scammers are also using DB transfers to part people from some or all of their hard-won retirement savings. Under these circumstances, the FCA is right to ask whether the current advice requirements are still fit for purpose.”

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Ryan McCormack, Invesco
This year sees the 25th anniversary of Invesco’s QQQ, the USD240 billion ETF – the fifth largest ETF in the...
The European ETF market achieved a record 28 per cent growth – reaching over USD1.8 trillion assets under management (AUM)...
Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by