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FCA asks: how can we help with DB transfer decisions?

FCA asks: how can we help with DB transfer decisions?

The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) have proposed a joint strategy to tackle defined benefit (DB) transfers, particularly for 'vulnerable' consumers. 

In a call for input published this morning, the two regulators set out a joint strategy for regulating the pensions and retirement income sector.

One of the areas in which the FCA and TPR have identified a need for a unified approach is 'supporting good choices and outcomes for consumers and members'.

This includes a focus on advice and information relating to pension freedoms, including DB transfers and non-advised drawdown.

The call for input adds: 'In particular we see a case for improved joint focus (involving a wide range of partner organisations) in situations where individuals are especially vulnerable to making poor decisions, for example where the future of a DB scheme is uncertain.'

Both the FCA and TPR have come under fire from the Work and Pensions Select Committee for their role in mitigating the high-profile British Steel Pension Scheme (BSPS) saga.

The call for input offers respondents the opportunity to suggest how best the two regulators could work together to ensure people make appropriate decisions, and to highlight when people are most vulnerable to poor decisions. 

The FCA will also, along with a wider group of bodies, have a greater hand in ensuring pensions are well run and funded, with effective governance and secure funding.

Other areas the regulators have identified as requiring a more joined up approach include access to pensions, value for money, and ensuring the safety of pension savings.

The latter includes tackling scams and ensuring that pensions schemes, and supporting services, can protect money they hold and comply with data protection laws.  

You can read the full call for input consultation here.

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