Defined Benefit  

DB complaints are increasing: what should advisers do?

  • Explain how to approach fact-finding when doing a DB transfer
  • Explain Fos expectations during a DB transfer
  • Explain how advisers can help clients' understanding of their pensions of DB transfers
CPD
Approx.30min

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So, in summary, write down or otherwise record absolutely all communications you have had with all parties, not just the client, ensuring they are comprehensible, stored in a method that allows easy retrieval (at short notice), in chronological order, permanently, and with no risk of deletion, accidental or otherwise. Simple.

Stay up-to-date

Although reading the FCA’s Cobs rules is very few people’s idea of fun, it is particularly vital where DB transfers are concerned.

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Cobs 19.1 will ensure that you get a lot of the basics right, and should the regulators want to review your processes and systems, Cobs is the lens through which they will do so. 

The FCA also issue non-handbook guidance and this is vital reading, with the inclusion of good/poor practice examples particularly helpful.

Tim Flippance is managing director of Grove Pension Solutions

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Below are some of the questions pertinent to DB transfers that should be included within normal fact-finding. Which of the following is NOT mentioned in the article by Tim Flippance?

  2. Why are conversations around ‘soft facts’ are vital?

  3. Why would the Fos expect to see that serious consideration is given to any early retirement options offered by the existing scheme?

  4. When discussing the recommendation, it is vital that the client’s feelings on any emotive issues are thoroughly detailed to help demonstrate why the client wants to transfer. True or false?

  5. Which of the following is the ODD one out? Under the terms of the time bar rules for complaints as set out in DISP 2.8, the Fos cannot normally consider a complaint if the complainant refers it to the Fos:

  6. What can help to demonstrate a client’s general understanding of the benefits of their existing pension and the risks involved in transferring?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain how to approach fact-finding when doing a DB transfer
  • Explain Fos expectations during a DB transfer
  • Explain how advisers can help clients' understanding of their pensions of DB transfers

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