A new voluntary code of practice has been
issued which sets out "industry standard due diligence"
which trustees, providers and administrators (collectively referred
to in this article as "trustees") should follow when
dealing with pension transfer requests. It sits beside the
existing legal and regulatory framework, including the
requirement for members transferring from DB to DC schemes
to take regulated advice (for transfers over
£30,000).
The code follows on from the Pensions Ombudsman determinations
earlier this year, which placed a high standard of due diligence
and understanding of scheme documents and legislation on trustees
when requested by a member to make a transfer payment. The code
highlights, but does not resolve, the difficulty for trustees where
they believe that a scam is being committed but the member appears
to have a legal right to demand the transfer.
