The Pension Advice Taskforce has launched a new voluntary code of practice for financial advisers looking to transfer DB pensions.
This Gold Standard code is based around a set of nine principles, and is designed to improve advice in this area.
Firms can adopt and promote these standards and principles, so consumers can better understand and find good advice, and be confident they are dealing with a firm that is going beyond minimum requirements when giving financial advice.
The Personal Finance Society chief executive Keith Richards says: “‘The Pension Transfer Gold Standard helps consumers better understand what good advice looks like and where they can find it, we believe it will represent significant progress towards avoiding a repeat of negative events such as the British Steel debacle of 2018.
He says that he hopes providers and scheme administrators will support the aims and objectives of both the Taskforce and Gold Standard.
This move has been welcomed by the Pensions Administration Standards Association, the independent body dedicated to driving up standards in pensions administration
The PASA says this new pension transfer gold standard will help members of pension schemes access good advice on their transfer options.
PASA’s DB transfer working group sponsor, Margaret Snowdon says: “We support any initiative that seeks to improve the quality of transfer advice and helps members gain efficient and safe access to their savings.
“As such, the Pension Transfer Gold Standard is a vital step forward in helping members build a better understanding of what good advice looks like and where to find it.
“Administrators undertake careful due diligence to help ensure transfers are as safe as possible, but ultimately the decision lies with the member, who relies on good advice. The Gold Standard’s Consumer Guide, due to be released later this month, will provide a tool to give members confidence that their adviser has their best interests at heart. Our DB Transfers Working Group is liaising closely with the Pensions Advice Taskforce and will actively encourage the administration community to include the forthcoming consumer guide alongside all transfer quotations.”