The Pensions Administration Standards Association (PASA) has announced it is launching a voluntary mediation service to resolve the issues experienced by schemes during the transfer of administration services from one provider to another.

PASA chair Margaret Snowdon noted that changing administrators might be a relatively rare occurrence, but when it does happen the process must be smooth, safe and hassle free for all concerned, which, she said, is only possible when the ceding and receiving administrators work in co-operation.

“PASA has been very clear on its position in this area, publishing our Code of Conduct on Administration Provider Transfers in 2013 and requesting that all members adhere to it. The introduction of our mediation service was therefore a natural extension of our work here,” Snowdon said.

“As well as empowering administrators to be the best they possibly can be, we want trustees to know they can rely on PASA membership as a means of indicating the quality of service provision - which starts with appointment and exit processes. We therefore give notice that, from 1 January 2018, members will be required to comply with The Code. PASA will be interceding if a need for improvement is identified around unreasonable delays, fees or expectations.”

PASA’s mediation service will be voluntary and non-binding, seeking to bring all three parties; the scheme, ceding and receiving administration providers together for practical and fair solutions in line with good industry practice. The mediators will be independent of administration firms to avoid conflict of interest and PASA intends to publish details of the scheme for formal launch in January 2018.

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