Cross-industry transfers group expands to reflect occupational sector
06 June 2017: The Pensions Administration Standards Association (PASA), the Pension and Lifetime Savings Association (PLSA) and the Society of Pension Professionals (SPP) have joined the cross-industry Group on improving transfers and re-registration.
Following feedback received at the stakeholder session in December regarding the unique challenges facing occupational schemes in relation to transfers, these trade bodies were invited to become involved.
In December, the Group published a consultation paper outlining proposals to improve the process of transferring pension and investment assets. A total of 44 responses to the consultation paper were received from various stakeholders across the retail investment and pensions industry.
The newly expanded Group has undertaken analysis of the submissions, and are in ongoing discussion with Government and Regulatory stakeholders regarding the next steps. These involve developing a governance framework for the introduction of standard transfer times across a spectrum of financial transfers.
The PASA, PLSA, and SPP are joining the following industry associations in contributing to this initiative:
• The Association of British Insurers (ABI)
• The Association of Member Directed Pension Schemes (AMPS)
• The British Bankers’ Association (BBA)
• The Investment Association (IA)
• Personal Investment Management & Financial Advice Association (PIMFA)
• The Tax Incentivised Savings Association (TISA)
• The UK Platform Group (UKPG)
Chair of the Group, Tom McPhail, Head of Retirement Policy at Hargreaves Lansdown, said:
“The average worker in the UK now has 11 employers during their working life. This means they may be transferring a number of times between different products, or consolidating from a number of different types of products. They are also increasingly likely to want to manage their own savings and investments up to and beyond their retirement. For this reason, it is essential this important industry initiative includes occupational pensions, whilst recognising the different concerns and legal requirements facing trustees and administrators. The participation of this broad coalition of industry trade bodies and groups is a reflection of the importance and value of this work.”
Tim Gosling, Defined Contribution Policy Lead at the Pension and Lifetime Savings Association:
“The vast majority of people no longer have a ‘job for life’ so it is vital that the industry evolves to help them deal with using a variety of different pots and assets to fund their retirement. We are therefore delighted to join this important cross-industry Group which is focused on improving transfers and re-registration. This Group puts good consumer outcomes at the heart of its discussions as it focuses on ensuring that people can safely access the assets they have worked a lifetime to build.”
Peter Dyer, director of PASA, said:
“I was very pleased to be asked to represent PASA for this industry initiative to set standards and improve the experience of pension scheme members in relation to transfer payments.”
John Mortimer, Company Secretary at the Society of Pension Professionals, said:
“We are pleased to be joining this initiative aimed at exploring ways to improve the transfer process for members of pension schemes“
Yvonne Braun, ABI Director of Policy, Long Term Savings and Protection, said:
“This initiative is a positive example of the wider industry collaborating to make things better for consumers. The involvement of PASA, PLSA and SPP is crucial to ensuring the proposed next steps are practical and deliverable for the whole sector.”
Notes for Editors
1. This press release is issued by the ABI on behalf of the review and all of the associated industry associations.
2. The following five proposals were outlined in the consultation paper in December to improve the transfers and re-registration process:
• The creation of clear service expectations for transfers and re-registrations, including a 48 hour standard for completing each step in the process.
• The collection of high level management information and a common reporting methodology for all transfers and re-registration instructions.
• The creation of a forum to identify, prioritise and implement solutions that resolve unnecessary barriers to transfer and re-registration processes.
• The development of common industry standards and good practice guidelines for the retail investment and pensions industry.
• The establishment of an independent governance and oversight body to oversee the implementation of the final proposals.
3. The scope of this initiative includes all types of tax wrappers and all types of assets that can be held within these wrappers. It also covers both transfers (where a transfer from one provider to another is done by selling assets and transferring cash) and re-registrations (where the registered ownership of the asset is changed and the asset is moved in specie). The types of asset classes held range significantly in structure from simple and widely available share classes in collective investments to physical assets held within SIPP accounts such as commercial property.
4. Due to the nature of processes and sub processes required to be undertaken to transfer the more complex asset types, it may not be possible to include these more complex asset types within the initial proposal to set clear service standards. Transfers of bank accounts or Cash ISAs are also not within the scope of the review, as these transfers have already been subject to a recent review and improvement of market practice.
5. Enquiries to: Tom McPhail 0117 988 9949 Mobile 07957 273627