PS15/12: Proposed changes to our pension transfer rules, feedback on CP15/7 and final rules

Published: 08/06/2015     Last Modified: 08/06/2015
We publish our Policy Statement on our proposed changes to our rules following an amendment to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO).

Why are we issuing this Policy Statement?

In March we consulted on proposed changes to our rules which will be necessary following an amendment to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO). This makes advising on the conversion or transfer of safeguarded pension benefits into flexible benefits a regulated activity.

We also consulted on related changes to ensure that our Conduct of Business Sourcebook (COBS) pension transfer requirements will apply to all pension transfers, regardless of when the transferred benefits are being crystallised.

Who is this PS aimed at?

This Policy Statement will interest:

  • financial advisory firms advising on pension transfers and
  • pension providers receiving transfer business, and
  • employer sponsors of defined benefit (DB) schemes and employee benefit consultancies

The PS is also likely to be of interest to retail consumers seeking to transfer benefits from DB schemes, or from pension policies with Guaranteed Annuity Rates (GARs), to defined contribution (DC) arrangements.

Policy Statement PS15/12 [PDF]

What are the next steps?

The new rules described in this Policy Statement will come into force on 8 June 2015. Financial advisory firms advising on pension transfers, pension providers receiving transfer business and employer sponsors of occupational schemes must make any changes necessary to comply with the rules.

Want to find out more?

For more information:

 

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