Pension Case Law Update - Mis-selling

Our June Briefing concentrated on managing the DB risk. In particular employers are showing renewed interest in promoting transfers from DB to DC schemes. Enhanced transfers/inducements to transfer can be an emotive subject for employers, trustees and members and so a firm grasp of the legal fundamentals is essential.

The legal issues include Data Protection issues around the membership records; the employer's duty of good faith; the role of the IFA; and FSA requirements. Some of these themes will be explored in more detail at Westminster & City's conference on Pension De-Risking on 1 – 2 October 2008 where Clive Weber is one of the speakers (www.westminsterandcity.co.uk).

The bottom line is that inducements can be legally valid in appropriate circumstances and if properly structured. Otherwise the Pensions Regulator would have long since banned such inducements. Some insurers have called into question whether enhanced transfer values are appropriate. Although