In early 2016, eight of the leading investment and pension trade associations, alongside nominees from member firms, joined forces to investigate ways to improve the process of transferring pension and investment assets.
In December 2016, the group published a consultation paper that outlines 5 proposals to improve transfer processes. The proposals relate to both transfers and re-registrations of retail financial products, and cover a broad range of tax wrappers and those asset types which are held in these wrappers.
The Group is seeking written feedback on these proposals and other ways to drive improvement by 31 January 2017, with a final set of recommendations due to be published in Spring 2017.
Summary of the five proposals to improve the transfers and re-registration process:
1. The creation of clear service expectations for transfers and re-registrations, including a 48 hour standard for completing each step in the process.
2. The collection of high level management information and a common reporting methodology for all transfers and re-registration instructions.
3. The creation of a forum to identify, prioritise and implement solutions that resolve unnecessary barriers to transfer and re-registration processes.
4. The development of common industry standards and good practice guidelines for the retail investment and pensions industry.
5. The establishment of an independent governance and oversight body to oversee the implementation of the final proposals.
New Chair of the group, Tom McPhail, of Hargreaves Lansdown, said: "With the demand for the volume of transfers and re-registrations set to increase in future, and ever increasing customer expectations around the timeliness and quality of switching, this is likely to become an increasingly important issue for pension and investment providers.
"I’m excited to be leading this initiative as it moves into its next stage, and I encourage all affected stakeholders to engage with the consultation paper and make their views heard."
Yvonne Braun, ABI Director of Policy, Long Term Savings and Protection, said: "Tom is a well-known commentator with in-depth knowledge of the products and tax wrappers affected by transfers and re-registrations, as well as a strong track record of advocating for better consumer outcomes.
"We’re delighted to be working with him on the next phase of this initiative, as the trade bodies consider the feedback from industry to inform our final recommendations."
Please click here to view the published consultation paper, and click here to view the previous press release on this initiative.
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