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.
(Now read ‘T’).
Have you advised on British Steel pension transfers? Action required!
Paul Jay Compliance 2016, 2018, FCA, Pension, Pension Transfer, protection, transfer
Firms who have advised clients to transfer away from the British Steel Pension Scheme (BSPS) should be well acquainted with the content of PS22/14 by now … … but some don’t seem to be aware that they need to have completed some key activity for clients in scope of the redress scheme. The BSPS […]