DB pension transfers

Advice on defined benefit (DB) transfers has always been high risk. Following the British Steel saga and poor standards uncovered by the FCA’s supervisory work, advice on DB pension transfers is now under increasing scrutiny.

With the FCA cracking down on poor advice given to consumers, it’s essential you have the appropriate measures in place
to get it right.

How can Bovill help with DB pension transfers?

We can help you test whether your DB pension transfer advice is likely to stand up to FCA scrutiny, and to identify and fix any areas where you fall short. Here are some of the ways we can help:

  • Training your advisers and relevant staff on current suitability standards, and how to demonstrate that their DB pension advice is suitable
  • Reviewing a sample of DB pension transfer recommendations to test whether your advisers are providing suitable advice
  • Reviewing your Pension Transfer Specialist’s ability to assess and sign-off advice provided by other advisers
  • Reviewing the effectiveness of your prior, current or post-sale quality checks on DB pension transfer suitability – are they identifying and addressing all the main suitability issues and risks to client outcomes?
  • Providing you with a bespoke DB pension transfer suitability assessment checklist that focuses on evidencing suitable client outcomes, rather than on process
  • Analysing your current DB pension transfer process to ensure all October 2018/guidance have been incorporated
  • Improving (and shortening!) your suitability reports so they’re more effective in helping your clients to make an informed decision, and helping you to evidence suitability
  • Reviewing the advice process your firm uses for DB pension transfers – does it cover all the bases and help your advisers to evidence suitability?
  • Designing a two-stage advice process to filter out clients clearly unsuited to a transfer at an early stage, before most of the time and expense associated with DB pension transfer advice is incurred
  • Conducting past advice reviews and remediation exercises, either by reviewing the client files ourselves or by providing independent QA/ validation of your internal reviews
  • Making sure your risk-profiling assessment methodology encompasses attitude to ‘transfer risk’.

Get in touch with our team below to find out more.