This is a generic term used to describe a switch from one investment to another. This could be an investment fund switch, an investment policy switch or a pension switch.
When it comes to pensions however, advisers can get confused between what constitutes a pension switch and what is a pension transfer.
To clarify therefore, a pension switch is where a retail client is transferring benefits from a personal pension or stakeholder pension scheme (where there has been no previous transfer from a defined benefits scheme) to another personal pension or stakeholder pension scheme.
There is no specific qualification requirement for advisers advising on pension switches.
FCA guidance can be accessed here
http://www.fca.org.uk/firms/financial-services-products/investments/pension-switching
Suitability reports must contain sufficient detail to justify any switch, including alternatives, disadvantages, risks, costs and charges.
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Financial protection post-BREXIT
Huw Reynolds Compliance 2020, 2021, complaints, EEA, EU, FCA, FOS, FSCS, protection, Update
In December 2020, we reminded readers about the expected changes to FSCS protection after the EU withdrawal period ended on 31 December. You can read that article here. The transition did end when expected and with last minute agreement on a trade deal, which was not so certain. However, the agreement did not cover financial […]