traced, so no money can go missing. No more error-prone manual paper processes and cheques lost in the post! Fast electronic transfers are entirely possible as they are already happening in the UK via Origo in 10 calendar days and over in Australia providers must transfer in 3 days or less. There’s already a 7-day switch guarantee on UK current accounts, and standard DC transfers are no more complicated. The switch guarantee also seeks to simplify the messaging on pension scams - and can be included as part of the HM Treasury and DWP scams consultation recommendations. Not all schemes are a scam, so it will help to start differentiating between what could be a scam, and what is definitely not - by using clear, objective criteria: ● Transfers to schemes operated by an FCAregulated firm or authorised master trust are on a safe list - these transfers should be conducted electronically and in 10 days or less ● Transfers to non-authorised schemes are not on a safe list, so require extensive manual due diligence and take six months or less This approach means
that standard transfers to legitimate schemes on the safe list can be sped up, enabling providers to slow down non-standard transfers and those to questionable non-authorised schemes.
supported by a Fintech coalition of Nutmeg, Moneyfarm and Scalable Capital - all of whom either offer or are set to offer FCA-authorised pension products this year.
This increases safety for consumers as ceding providers have more time to focus on non-standard transfers, and thwarts scammers who insist on moving quickly. It also maintains an end-to-end time limit for both types of transfer, essential for accountability in the industry.
Unless we have uniformity in the transfer process, we are going to be critically unprepared for the Pensions Dashboard, a platform that lets savers see all their pension pots in one place for the first time. It’s essential that a standardised process on pension transfers is up and running before launch - the first thing people will want to do when they see old pension pots scattered about is move them!
PensionBee believes that these issues need to be addressed urgently. We urge you to write a letter to your MP via our campaign page. So far we’ve have had a really great response from MPs, who all agree that consumers need to be able to take control of their savings easily and simply. Now is the time to implement a proper set of rules. The 2015 HM Treasury consultation on transfers already acknowledged that improvements in scheme administration are required, especially in trust-based schemes. We welcome a new regulatory framework for master trust schemes to classify which schemes can be placed on a safe list. We urgently need this safe list! The campaign is publicly
Here at PensionBee we think it’s high time that the pensions industry had some basic switching principles. Like other regulated markets the process should be free, quick, easy, and happen at an agreed date. We know it’s possible, because some providers already do it. We call upon members of the Transparency Task Force to support the 10-day pension switch guarantee by writing to your local MP and spreading the word amongst your own networks. Help us bring greater transparency to pension transfers!
PensionBee is an online pension manager that helps customers find and combine their old pensions into a brand new online plan, managed by the world’s biggest investment managers. Customers can add more pensions as they switch jobs, make new contributions and see a forecast of their retirement savings amongst other things. We exist to simplify the pensions industry and make it easy for consumers to save for their future.
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The Transparency Times | www.transparencytaskforce.org | March 2017 | Edition #11