Some risk factors might be particularly prevalent and relevant in current circumstances. Firms may need to revisit their risk warning processes to ensure that they are appropriate during the pandemic. provide appropriate warnings to make the customer aware of the risks and implications of their chosen optionĬOBS 19.7.12G gives examples of risk factors that providers should look for.ask questions to identify factors that increase the risk associated with how the consumer has decided to access their pension savings.encourage clients to take regulated advice to understand their options at retirement.signpost the availability of free and impartial pensions guidance from MoneyHelper's Pension Wise, which can be provided over the telephone.When a consumer indicates they want to access their pension pot, even when the client has received pensions guidance or taken regulated advice, providers are already required to: They give providers a solid footing to objectively present matters that their customers may need to think about before they can access their pension savings. Our retirement risk warning rules ( COBS 19.7) are not just a regulatory requirement. Providers tell us they are concerned that, in these uncertain times, some consumers might seek to access the funds held in their pensions, when they wouldn’t otherwise have done so, or without properly considering the downsides. ![]() Customers contacting providers to access their pension funds Within the framework, providers can still help consumers understand the impact of their choices in the current circumstances. We think our regulatory framework provide ample scope for providers to have meaningful discussions with consumers about the risks and consequences of the actions they’re considering. Please see our Perimeter Guidance (particularly PERG 8) for more information on what kinds of communications are likely to be personal recommendations. Unless they are willing to comply with the conduct requirements for personal recommendations, providers and operators (providers) should be careful not to provide regulated advice, even implicitly, by steering the consumer to a specific course of action on their investments. We explain what firms are already required to do by our Retirement Risk Warning rules and how this may empower them to have the right kind of discussions with investors. However, some providers and trade associations have asked us for guidance on what they can say to these consumers without inadvertently giving advice. Providers may want to give their customers information that helps them make better informed decisions. accessing the funds held in their pensions.whether the value of their pension has been affected, and why.These are understandably worrying times for consumers, who may seek contact their provider, to discuss: Here we provide guidance about how pension providers can have meaningful discussions with consumers about the risks and consequences of some actions without straying into providing advice.Ĭoncerns about the economic impact of the coronavirus pandemic have led to stock market volatility. As a result, some consumers will worry that the value of the investments in their DC pensions may have fallen.Īt the same time, many may find themselves in an economically vulnerable position because of the pandemic. ![]() Guidance on giving consumers pension information without ‘advice’ This will help them enable consumers who are considering a transfer out of their DB pension scheme to make well-informed decisions. We have also published guidance for advisers providing advice on defined benefit (DB) pension transfers.
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