Transact says that in future transfers of over £30,000 will only be accepted if the client has received a personal recommendation to transfer their benefits.
The company is updating its pension transfer application form to take this into account alongside the risk of so-called ‘insistent clients’ demanding a pension transfer without fully understanding all the risks.
In June the FCA published a new policy statement (PS20/06) in conjunction with The Pensions Regulator to warn DB pension savers of the risk of transferring their DB pensions.
In its latest newsletter for advisers, Transact says: “Many of you will be aware of the FCA’s most recent policy statement on pension transfer advice (PS20/06).
“One of the areas discussed in the paper was the treatment of insistent clients. To limit the potential risks involved with accepting transfers in these circumstances, we are refining our pension transfer procedures.
“In future, for transfers of safeguarded benefits that exceed Ј30,000, we will only accept the transfer if the client has received a personal recommendation to transfer their benefits. Our pension transfer application form is being updated to take this into account.”
The FCA policy statement in June coincided with the FCA making sweeping changes to the DB transfer market by banning most contingent charging. It also announced plans to drive up transfer advice standards.
The FCA consumer guide to pension transfers tells savers not to “rush” decisions about their pension and get advice first. It also highlights the risks to savers of transferring out of a DB scheme.
Transact CEO Jonathan Gunby said the changes were modest and mostly aimed at a small group of "insistent clients."