Switches

26 August 2014 David AndersonSuitability

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’).

Don’t forget to check Our View about this article and the Actions Required By You

Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.

ATEB Compliance offers compliance and regulatory advice.

ATEB Suitability provides report writing software for the financial services market.