The Chartered Institute for Securities and Investment’s (CISI) level 6 defined benefit transfers qualification has been officially approved by the Financial Conduct Authority (FCA), with first examinations starting later this year.
The qualification is already available for registration for candidates holding a Level 4 qualification and Statement of Professional Standing.
Candidates will be able to sit the three-hour exam from December 2017, while the CISI workbook to accompany the test can be obtained from now on.
Pension transfer activity has soared since the introduction of the pension reforms in 2015.
New estimates published in June found up to £50bn had been taken out of pension transfers since pension freedom. The FCA in June confirmed it was looking into firms that had increased the number of DB transfers they were undertaking.
CISI global director of learning James Stockdale said: “We have introduced this new, important qualification as a result of listening to our members. CISI members have noted requests for information on pension transfers from current and new clients have soared since pension freedoms were announced by the UK Government in 2015.
“We owe it to the consumer to ensure that our members are sufficiently qualified to the highest standards to help them navigate these new pension freedoms and help consumers financially plan their future lives.”
He added demand for DB transfers was likely to increase further once the new EU Directive on Occupational Retirement Provision (IORP II) was introduced.
The directive will mandate that a standardised pension benefit statement must be provided to all pension scheme members, providing clear information on their individual pension entitlements. The UK market is having to implement this directive by 13 January 2019, according to Stockdale.
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