Week ending 29 March 2019
SIPP stops accepting DB transfers
A self-invested personal pension (SIPP) provider has announced that it has stopped accepting business from defined benefit transfers. It is one of the providers that accepted British Steel transfer business. The move is in response to a letter from the FCA addressed to CEOs of pension providers, reminding them they should have measures in place “to ensure that products are being recommended responsibly and appropriately”. This “Dear CEO” letter has left providers concerned that they are being asked to check that advice given to transferring DB members is suitable, even when the advice was given by an unconnected, third party firm.
DC overtakes DB
The latest data from the ONS shows that employee contributions into DC schemes have overtaken employee contributions into DB schemes for the first time. This data does not include group personal pensions, so under-reports DC contributions. Employee contributions into DB pensions fell from £3.4bn in 2017 to £3.2bn in 2018, while the amount paid into DC schemes rose from £1.4bn in 2017 to £4.1bn in 2018.
High Court dismisses pensions case against former directors
KeyMed Ltd brought proceedings against two of its former directors, who were trustees of the staff pension scheme and also a separate executive scheme, claiming they had breached their duties and put their own interest above that of the company. The High Court dismissed the case. It decided that there had been no dishonest breach of duty and the directors had in all cases acted properly, with changes to the pension schemes having received approval through the proper channels.