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’).
Double bubble equals trouble
Paul Jay Compliance EBI, FCA, PI, platform
A lot of our recent articles have provided our views on what we see as a significant shift in the FCA’s stance and the tone of their language. Not because we do so for the fun of it, but because there has been a tangible shift. As yet, the anticipated findings from the thematic review […]