TISA calls for clearer rules on pension transfer reputability

The Investing and Saving Alliance (TISA) welcomed proposals to widen the streamlined pension transfer route but said the test for deciding if a receiving scheme is reputable needs to be clearer and stronger.

In its response to the DWP consultation on amending pension transfer regulations, TISA called for clear guidance in legislation to stop schemes interpreting the reputable threshold differently. 

Renny Biggins, head of policy: products & long-term savings at TISA, said: “We welcome the intention behind these reforms to make legitimate pension transfers safer and more efficient. 

“However, that objective will be undermined if the proposed ‘reputable’ threshold is left open to interpretation. 

“Different ceding schemes could reach different conclusions about the same receiving scheme, recreating the inconsistency and delay the changes are intended to address.”

Biggins added: “More robust guidance is required to help ensure consistent outcomes.

“Secondly, while ceding schemes have an important role in protecting members from scams, they should not be expected to assess the wider merits of other providers. 

“That is the responsibility of the regulators. Once a scheme has been established as genuine, the transfer should proceed without further flags creating unnecessary friction.”