Old Mutual Wealth (OMW) has partnered with the Chartered Insurance Institute (CII) to launch a defined benefit (DB) pension transfer training programme, in response to the more rigorous rules proposed by the regulator.
The programme consists of a series of training events aimed at pension transfer specialists, starting from 2 October.
It will cover best practice steps, intended to help advisers manage the risks that come with advising in this area and to ensure a more robust DB to defined contribution (DC) transfer process.
OMW said it decided to set up the programme with the CII in response to recent growth in the market and the subsequent increased regulatory demands on advisers.
The firm had seen the number of transfer evaluation queries double since last August in line with an industry-wide trend, it said.
More stringent rules
The Financial Conduct Authority (FCA) proposed more rigorous measures on DB transfers in a consultation paper in June to ensure consumers can make better informed decisions.
For instance, it proposed to change the current starting assumption for DB transfers, taking away the negative assumption clause, and said all DB transfer advice should be based on a personal recommendation.
In its response to the FCA consultation, which closed on 21 September, OMW said it agreed with both proposals.
OMW UK distribution managing director Scott Goodsir said: “Pension transfers have fast become a mainstream topic for consumers and current market practices are under review by the regulator. This is an area where the help of a financial adviser is absolutely invaluable, as people need high quality and suitable advice, not just for today, but for their long-term future.
“We are launching the new training programme with the CII to ensure specialist advisers have the best possible knowledge and experience to feel confident and secure in the advice they are giving.”
CII managing director of engagement and Personal Finance Society chief executive Keith Richards added: “Proposed clearer rules on advice requirements from the FCA are a welcome step in the right direction in addressing the increasingly complex issue of pension transfers, as well as ensuring firms can clearly demonstrate they have acted on the specific needs and overall circumstances of each client.
“With this in mind, we are delighted to be working with Old Mutual Wealth in the delivery of this new good practice programme, one that we are sure advisers will welcome as they strive to meet the growing demand for advice in this area and the consistent delivery of good client outcomes in line with regulatory and consumer expectations.”
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