All advisers working in pension transfers and consolidation must work to the principle of ‘documentation, documentation, documentation’ to ensure they meet exacting regulatory requirements, delegates at Professional Adviser’s annual conference heard.
LV= head of policy Philip Brown said advisers must start with the mindset of documentation first or risk even-greater scrutiny from the Financial Conduct Authority (FCA).
“There is an unprecedented level of FCA engagement at the moment,” he told delegates at PA360.
Brown, who previously worked at the Financial Services Authority, said consumers faced an increased level of pension complexity as the accumulated more and more pots throughout their career which has resulted in the level of interest in pension consolidation and transfers rising.
However, he added it was essential advisers get it right in every instance. “Moving pensions is a complicated business. If you do not document it [a decision in the advice process] then the regulator will think it has never happened.”
He added: “The regulator’s position is documentation, documentation, documentation. It is all about what you can prove on how you ended up where you ended up.
“It also means you must put the right information in front of that consumer.”
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