The NAPF has responded to the FCA consultation which sets out their revised regulatory approach to advice on DB to DC transfers.

The NAPF's response welcomes the extension of FCA's regulatory powers to cover advice on transfers from occupational DB schemes to occupational DC schemes as well as some other minor regulatory tweaks.

In a letter to John Reynolds, strategy and competition division at the Financial Conduct Authority, NAPF policy lead on DB Helen Forrest says:

"The NAPF lobbied strongly for this extension to ensure that scheme members moving DB benefits to an occupational DC scheme can be confident that the advice they receive will be regulated - and they will have recourse to the FCA and ultimately the Financial Ombudsman should that advice be inappropriate."

The letter goes on to give support to the FCA's proposal to require the Pensions Transfer Specialist qualification for advice on all DB to DC transfers, in particular including "when the transfer is for the purpose of crystallising benefits, which was not previously covered."

The NAPFT also agrees with the automatic grandfathering of firms with the existing Pensions Transfer permission and welcomed the proposed content for the 'advice confirmation' letter.

However, the letter expresses concern about an apparent inconsistency in the treatment of GAR benefits between the FCA and DWP urges the FCA to clarify this as soon as possible to avoid confusion.

"More generally, as the FCA recognises in the consultation, there are likely to be further changes required to the FCA's rules to take account of the pensions flexibilities and we look forward to working closely with the FCA as they develop their thinking on these areas," said Helen Forrest.

First published 16.04.2015

Lindsay.sharman@wilmingtonplc.com