The Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021 came into effect on 30 November 2021. Trustees must now ensure that transfer requests meet certain conditions before allowing a member to transfer their pension out of the scheme.
For all transfer requests, Trustees are required to collect certain information about the member, the receiving scheme and about any financial advisor and other individuals involved in the transfer; including names, addresses and registration numbers. Trustees are also required to make sure that for certain transfers, members have received advice from an advisor with the appropriate permission.
The new Regulations give Trustees the power to refuse transfers where there is a heightened risk that it may be part of a scam.
From 30 November 2021, Trustees must check that the transfer request meets the conditions to enable a statutory right to transfer.
The receiving scheme is a scheme listed in the transfer regulations, which are:
If the receiving scheme does not meet the First Condition, Trustees must check the following:
If the Trustees are not satisfied that the First or Second condition has been met, the member loses their right to a statutory right to a transfer.
After receiving MoneyHelper guidance, the member may choose not to proceed with the transfer. Trustees should then consider whether to report the transfer as a potential scam. If the member still wishes to proceed with the transfer, Trustees should record the decision they have made and arrange to pay the transfer.
Trustees should keep records of all information requested and received, of their assessment, decision and communications with the member. The Regulations include timescales for communicating with members which the Trustees need to comply with.
Trustees need to ensure that their scheme administrators have updated their processes to ensure transfers are dealt with in accordance with the new Regulations.
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