Pension transfer cases must be reviewed by independent financial advisers (IFAs) as a priority, particularly to ensure clear documentation of all advice, says MetLife Europe Limited (MetLife).

Failure to review cases could risk enforcement action, even if appropriate advice was given, according to Metlife. The ongoing Financial Services Authority (FSA) review of the pension transfer market has led to claims that advisers could face further fines if they do not show clear benefits for clients who have been advised to switch into personal pensions or self-invested personal pensions (SIPPs).

Sixteen per cent of cases reviewed by the FSA since April 2006's A-Day were found to have been wrongly advised to move; 79 per cent of these cases were accounted for by extra costs associated with the transfer.

Advisers need to focus on fact-find to ensure product suitability, attitudes to risk, charging and commission, portfolio planning and asset allocation, provision of ongoing advice, and clear documentation.

"The FSA pension transfer review is understandably raising concerns for advisers who are worried about potential fines for not having adequate audit trails," commented Peter Carter, head of product marketing, retirement and savings at MetLife, UK branch.

"Reviewing all transfer cases can be time-consuming.

"However, the majority of advisers will be able to demonstrate the suitability of their advice. It is clear that genuine reasons for businesses to be transacted exist but advises need to focus on proper documentation."

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