Industry consults with FCA and DWP on pension transfers

The consultation looks at the mechanics of the transfer process, creating service standards and accountability for each of the stages of a transfer transaction across a range of product types and systems.

Research conducted by Hargreaves Lansdown shows two principal problem areas; occupational pension schemes and pensions which don’t use electronic transfers.

The quickest firm took just 4.33 days on average to complete a transfer, compared to 53.37 days at a benefits consultancy.

Hargreaves Lansdown would like to see an end to end guarantee of no more than 7 days for transferring pensions and investments between investment providers.

Tom McPhail, head of retirement policy at Hargreaves Lansdown, commented: “Moving pensions and investments around between companies can still be a lottery for investors. Some companies have invested in delivering efficient and predictable service for their customers but others are still bedevilled by turgid, unpredictable and bureaucratic systems.

"It takes two to tango and it doesn’t matter how good one company’s systems and customer service is, if the counterparty in a transfer transaction is dragging their feet or operating poorly. So it makes sense to address this issue on a collaborative, collective endeavour basis; there is a commitment across the industry trade bodies and organisations involved in this consultation to raise standards across the board.”