 |
answer text |
<p>The overarching objective of the advice requirement is to ensure that members understand
the financial implications of transferring to a scheme with flexible benefits. The
process enables a clear view of the choices available to the individual and the longer
term risks attached to accessing flexible benefits.</p><p> </p><p>The government has
to consider the needs of all pension savers regardless of their individual circumstances
and it believes that enabling members to make informed investment decisions will yield
greater long term financial stability for the individual. It is not therefore policy
to introduce an opt out option to this part of the transfer process.</p><p> </p><p>In
forming this view, DWP has engaged with pensions industry bodies, the regulators and
consumer groups to review The Pension Schemes Act 2015 (Transitional Provisions and
Appropriate Independent Advice) Regulations 2017. The review considered how the advice
requirement is working in practice and if there are any unintended consequences. A
report of the review was published in June 2023 and is available on gov.uk.</p><p>
</p><p>Whilst the report concluded that the existing measures remain appropriate and
effective, the department will continue to work closely with HMT and FCA to consider
changes to the regulations that will improve the transfer process whilst ensuring
that members continue to receive an appropriate level of protection and support.</p><p
/><p><strong> </strong></p><p><strong> </strong></p><p><strong> </strong></p><p><strong>
</strong></p>
|
|
