Strategy
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.”