The Pensions Regulator (TPR) has updated its trustee requirements when transferring a member's defined benefit pension pot to a defined contribution arrangement.

Trustees are expected to verify that the member has received “appropriate independent advice” and to check whether the adviser has the correct permission to proceed.

As part of the transfer process, advisers will have provided written confirmation to the member, which should be passed on to and retained by the trustee.

This confirms whether the adviser has the required authorisation to provide transfer advice and it is specific to the type of transaction.

Once the trustee has confirmed the appropriate independent advice has been received, they are now required to check that the adviser has the correct permission to continue with the regulated activity by verifying details on the Financial Services Register.

TPR expects trustees to carry out their due diligence to safeguard members when transferring from DB to DC.

However, some critics have warned that this may add to already lengthy pension transfer times.

TPR added: “Requiring members to obtain appropriate independent advice does not make trustees responsible for checking what advice was given, what recommendation was made or to confirm whether the member is following that recommendation.”

The Financial Conduct Authority's is introducing its 'Senior Managers and Certification Regime', which sees changes as to who is on the FCA advice register, with only senior managers and “selected other roles” to be included from 9 December 2019.

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