Altus has challenged the claim that pension transfers are ‘too hard and too expensive’ by stating that transfers for ISAs and funds are currently being completed in less than six days for just £1 and often, even less.
The ongoing debate circulating around the ‘pot follows member’ initiative has highlighted that the biggest objection to the scheme from those favouring aggregation or ‘scheme follows member’ models, which is that transfers are too costly.
However, experts at Altus have claimed that the progress of the TISA Exchange (TeX) re-registration project proves that implementation of open standards in the transfer market combined with interoperability between providers will be able to drive competition and ultimately, reduce costs.
Commenting on how pension transfers can be executed in a cost effective manner, Altus’ Head of Products, Ben Cocks says:
‘The significant increase in volume of automated transfers and re-registrations as well as the number of live participants and live vendors operating has meant that competition is in full swing and consequently transfers can now be completed for just a pound. In some cases, where larger providers are processing big volumes of electronic transfers, the costs are well below a pound per transfer’
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