Selectapension Response to FCA Policy Statement PS18/6
On 26th March 2018, following a consultation period, the FCA released new guidelines for Advising on Pension Transfers.
Selectapension has digested the Policy Statement and can confirm that all regulatory development will be carried out ahead of the implementation date of 1st October 2018.
Having reviewed the statement, we are pleased to confirm that our current Defined Benefit module already covers the majority of the requirements, including;
- Calculating the existing pension at NRA and differing ages
- Review of Death Benefits on a capitalised basis for existing and receiving scheme
- Comparison of underlying Investments and costs of receiving schemes
- Ability to demonstrate how benefits can be accessed in the receiving scheme (FAD, UFPLS)
- Consideration of PPF and Scheme Funding Status
- Estimated cost of purchasing benefits as an annuity
- Consideration of other Investments / holistic approach including State Benefits (Income Modeller)
- Analysis past the clients life expectancy pulled through from ONS
We will be updating our Defined Benefit Report to include the following changes;
- Transfer Value Comparator (TVC) following the assumptions and layout prescribed by the FCA. The TVC will form part of our current Defined Benefit report and will be available to print as part of the main report or on a standalone basis.
- Update the Annuity Interest Rate (AIR) calculation. The AIR will be calculated on the 6th of each month, it will be based on the average of the most recent three monthly yield calculations as determined on the 15th of the month.
We will also be launching a Lifetime Limit Analysis feature within Defined Benefit TVAS tool. More information about this development will be announced soon.
For further information
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