Week ending 21 June 2019
GMP equalisation good practice
The GMP Equalisation Working Group (GMPEWG), established to provide good practice industry guidance, has formed five sub-committees to deal with the work of drafting guidance on separate topics. The sub-groups are methodology, impacted transactions, reconciliation and rectification, data and tax. The group expects to provide initial information on impacted transactions, data issues and suggested approaches to GMP reconciliation and rectification exercises by the end of June 2019, with the first set of good practice guidance from the sub-committees due out by the end of September 2019.
Too many DB transfers?
The FCA has published data about DB transfer advice which is out-of-line with its starting point that transferring out of a DB pension scheme is unlikely to be suitable for the member. Of 2,426 firms who had provided DB transfer advice for almost 235,000 members, nearly 70% of those members had been advised to transfer out (this reduces to 55% if you include those members who had decided not to transfer after initial triage discussions). The total value of DB pensions advised upon was £82.8bn with an average value of £352,303. The FCA is now writing to and visiting firms to set out their expectations and the actions that firms should be taking.