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<p /> <p /> <p>We already have powers in place to legislate to ban cash incentive
transfers. The incentive exercises code of good practice was created in 2012, and
set out seven key principles that pension providers and their advisers must adhere
to if they wish to offer their members incentives, including ensuring that members
are given sufficient information to enable them to make an informed decision.</p><p>
</p><p>A large number of providers and independent financial advisers have signed
up to the code, delivering a prompt solution to address this issue. The Government
would encourage all providers to comply with the code.</p><p> </p><p>Following the
Budget announcement HM Treasury are currently running a consultation, “Freedom of
Choice in Pensions” where it is considering whether people with a defined benefit
pension should be allowed to transfer their accrued benefits into a defined contribution
scheme. The outcome of this consultation will inform our thinking on what additional
action, if any, the Government should take to restrict or ban pension providers from
offering incentives</p>
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