Strategy

Old Mutual Wealth Launches Pension Transfer Programme

Robbie Lawther Reporter London 25 September 2017

Old Mutual Wealth Launches Pension Transfer Programme

The programme has been launched to train advisors on the new changes surrounding pension transfer.

Old Mutual Wealth has partnered with the Chartered Insurance Institute (CII) to launch a new defined benefit to defined contribution transfer training programme. The programme comprises a series of training events which begin on 2 October.

The financial services firm has decided to launch this new programme due to increasing demand and proposed changes to rules that will make pension transfer advice more rigorous. ​Old Mutual Wealth and the CII are providing training aimed at pension transfer specialists that will help them manage the risks within their defined benefit transfer advice processes, OMW said in a statement.

According to the firm, the demand for pension transfer valuations continues to grow and transfer evaluation queries to Old Mutual Wealth have doubled since last August, and therefore training is needed to be well-equipped to deal with the increasing demand.

OMW said: "In its recent consultation, the FCA proposed a range of new measures to ensure regulation around the pension transfer market is modernised so that consumers make better informed decisions. These measures include a change to the starting assumption when advising on a transfer and an obligation to provide pension transfer customers with a personal recommendation. In its response to the FCA consultation, which closes on 21 September, Old Mutual Wealth has agreed to both proposals"

It added: "The regulator has suggested a slight amendment to the starting assumption for a pension transfer.  At the moment the starting assumption is a transfer is unsuitable and the FCA is considering changing this to state that for most people retaining safeguarded benefits will likely be in the customer’s best interests. Old Mutual Wealth agrees with this proposal and thinks the modification will bring the assumption more in line with the current market."

The FCA has also proposed a new requirement that all transfer customers must receive a personal recommendation.  In its response, Old Mutual Wealth agreed and noted there is significant risk to consumers if advice does not take into account the individual’s personal circumstances, according to OMW.

“Pension transfers have fast become a mainstream topic for consumers and current market practices are under review by the regulator," said Scott Goodsir, managing director of UK distribution at Old Mutual Wealth. "This is an area where the help of a financial adviser is absolutely invaluable, as people need high quality and suitable advice, not just for today, but for their long-term future. We are launching the new training programme with the CII to ensure specialist advisers have the best possible knowledge and experience to feel confident and secure in the advice they are giving.” 

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