Expert Q&A
Transfers and common issues that can arise
Transfers are a big part of what we do here at PSG SIPP. Each one requires dedicated staff and huge amounts of time, information, and patience to complete Achieving the transfer of existing funds is often an extremely slow and arduous process that adopts its own unique set of challenges. All of this can naturally be quite frustrating for the advisers we work with and for their clients who simply want to know that the process has been completed successfully into their newly established scheme. To use a well-known analogy, you can often think of each transfer process we complete as an efficient game of swing ball. The provider of a transferring scheme or company will bat questions and we at PSG SIPP will bat them back with as much information as we can and anticipation of what they will need to know in order to try and bring the game to as swift a conclusion as possible.
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The goal throughout all of this is of course is trying to ensure that the funds are released and the transfer is complete, but it’s important to note that none of this is happening because we, or the transferring scheme is choosing to be difficult, or to inconvenience the client and/or their adviser. In fact, the reasons why this can take such a lot of time and effort is quite the opposite. It should come as no surprise to hear that pensions are as vulnerable as any other financial asset to fraud and misuse. Here in the UK, strict regulations and guidance are in place to combat pension scams. Guidance around how transfers should be arranged and completed is appropriate and measures that need to be undertaken in order to protect consumers are necessary. This high level of caution can often cause an unavoidable slowing of the transfer process. Any trustworthy company involved in the handling of pensions, whether it is PSG SIPP or the provider transferring funds to us, is not only working to ensure compliance with UK regulations, but also puts an equal amount of responsibility and ownership on the need to protect their clients from risks of harm and to prevent undermining consumer confidence.
Further delays and the necessity to exercise even more caution can unfortunately occur when a client is an overseas resident. Regulators and transferring scheme providers perceive there to be a heightened risk of fraud and so may require specific and enhanced requirements to be met before they will permit a transfer.
Our policy on transfers We’ve recently drafted a comprehensive Transfer Policy and detailed guidelines to transfers for our advisers and clients, in order to help them better understand what’s involved. To receive a copy of this simply email us at info@psgsipp.co.uk
