Week ending 11 January 2019
Guidance on GMP equalisation
Following the Lloyds Bank ruling, the Pensions Administration Standards Association has launched a new industry group to develop and promote best practice in equalising the benefits of men and women for the effects of unequal GMPs. This group will bring together representatives from advisory, legal, administrative, actuarial, data, and trustee sectors.
Contingent charging inquiry
The Work and Pensions Committee has launched an inquiry into the practice of contingent charging for DB pensions transfer advice, which is where the adviser is only paid, or is paid much more, if the person decides to take the transfer. The WPC is seeking to gather evidence on whether contingent charging increases the likelihood of bad advice. The inquiry will assess the impact of a possible ban and will also explore alternative solutions that could be employed to remove conflicts of interest. The inquiry follows a statement from the Financial Conduct Authority in October 2018, which concluded that contingent charging is not the main driver of poor outcomes for those transferring but said that further analysis was required. The WPC will seek to provide an in-depth analysis, with submissions open until 31 January 2019.
Pensions cold-calling ban
The ban on cold-calling has now come into effect, making it illegal for any member of the public to receive unsolicited calls regarding their pensions. Any company caught disregarding the ban could face enforcement action and fines of up to £500,000.