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’).
Advising non-UK clients
Alistair MacDougall Compliance Conduct, EEA, email, EU, FCA, MiFID, passport, PI, vulnerable
Despite the fact that the UK ceased to be a member of the EU/EEA almost a year ago, we are still asked for advice around how a UK firm can take on a new non-UK client or continue to deal with such clients that the firm had pre-BREXIT. We have written before about the general […]