National IFA Positive Solutions has overhauled its pension switching guidelines for its 1,300 partner advisers following FSA guidance and recent regulatory action against at least 22 firms.
New limits for transfers have been set at 1% per annum for each complete year remaining until the client's intended retirement date. This kicks in after five years, before which a 5% shortfall limit is allowed. It is subject to a maximum shortfall of 20% for clients with 20 or more years remaining to normal retirement date (NRD). Previously, shortfall limits at the Aegon-owned business were banded in five year periods. The company says it undertook the review, which includes projections for switches into insured funds and collectives for SIPPs, following industry-wide FSA guidance ...
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