Pension Lab calls for existing transfer technology to tackle LoA delays

Pension Lab has called for the industry to use existing transfer technology to fix problems with Letters of Authority (LoAs). 

The fintech completed a pilot showing that technology already used for pension and investment transfers can validate LoAs and return information through digital responses. 

The approach uses infrastructure already in place for pension, self-invested personal pension (SIPP) and ISA transfers, meaning providers do not need to build new systems or join another network. 

The pilot used Discovery Messages to check information against records, validate or reject requests and return selected information where systems are integrated. 

Responses can be returned within seconds if organisations have integrated systems, while service levels require responses within two business days. 

Applying this to LoAs could give providers a quicker and more consistent way to validate requests and return information, according to Pension Lab.

Pension Lab has asked the industry, including the 150 plus organisations already using open standards transfers, to extend their existing technology so providers have fewer inboxes, faster validation and reduced manual work. 

Advisers can get confirmed requests within seconds, quicker alerts and fewer follow-ups.