David Everett

This Practice Note covers the regulated activity of advising on the conversion or transfer of pension benefits (which may be carried out, eg in the context of DB to DC transfer) under Regulation 53E of the Financial Services and Markets Act (Regulated Activities) Order 2001, SI 2001/544, the persons who are permitted to carry out this regulated activity, and the Financial Conduct Authority’s (FCA’s) rules and requirements on how this regulated activity should be carried out, including considerations relating to the client’s best interests, producing and communicating a transfer value analysis, and advice in relation to enhanced transfer value exercises. This Practice Note also considers recourses available where the advice provided was unsuitable.

This Practice Note covers the requirements imposed by the Occupational Pension Schemes (Governance and Registration) (Amendment) Regulations 2022, SI 2022/825 and before that, the Competition and Markets Authority (CMA), in respect of the appointment by pension scheme trustees of fiduciary managers (FM managers/providers of FM services) and investment consultants (IC consultants/providers of IC services). This includes, among other things, the requirement to run a qualifying tender process in respect of fiduciary managers and the requirement to set objectives in respect of investment consultants. Exceptions to these requirements are also considered.

This Practice Note describes and comments on the process that must be undertaken should the trustees of an occupational pension scheme with guaranteed minimum pension (GMP) liabilities wish to convert them into other defined benefits.