The Pensions Regulator is reviewing its guidance for pension scheme trustees on defined benefit to defined contribution transfers, Lesley Titcomb has revealed.
Ms Titcomb said: “We are already providing trustees with good quality communications materials.
“However, we will be liaising closely with the Financial Conduct Authority through the work of their behavioural insights team to develop even better collateral and processes in future.”
The communications review follows the independent review of the British Steel Pension Scheme (BSPS) debacle published in January by ex-Money Advice Service chief and Pension Superfund trustee Caroline Rookes, which recommended trustees should compile a list of advisers for pension transfers among other things.
The Pensions Regulator, alongside other regulators, will publish a plan of action by the end of April in response to these matters, Ms Titcomb said.
She also revealed that in light of a recently agreed joint protocol The Pensions Regulator, the Financial Conduct Authority, the Single Financial Guidance Body – rebranded Money and Pensions Service – and the Pension Protection Fund were sharing “intelligence and information on an ongoing basis, and have also put in place a quarterly meeting to discuss issues and coordinate action”.
Ms Titcomb also noted these organisations had been using shared intelligence to contact pension trustees they had concerns about.
Meanwhile the regulator has provided trustees with information to help members who request a cash equivalent transfer value to understand the risks associated with giving up guaranteed DB benefits, she said.
FTAdviser reported last August that since January 2017 The Pensions Regulator has sent 12 letters to trustees about being targeted by financial advisers who are encouraging members to transfer their DB pension.
The watchdog is also working on guidance for trustees facing restructure and other major changes, Ms Titcomb said.
She noted: “Working with our partners, we plan to address the report’s recommendations by creating new clearly-signposted online guidance for trustees to help them communicate clearly and in a timely fashion with members in the event of a pension restructuring, or other event that may trigger members to consider future membership of a DB pension scheme.
“We expect this to include materials and templates that trustees can download from our website and tailor to their members’ communication needs.”
Originally posted by Maria Espadinha of FT Adviser
To know about the products we offer, please don’t forget to check our products page for details.