Variance in DC transfer times sees 'detrimental' impact to saver trust

Standardised communication recommended to aid advisers

Hope William-Smith
clock • 1 min read
Variance in DC transfer times sees 'detrimental' impact to saver trust

The variance in the time taken for defined contribution pension transfers to process is having a noticeable impact on confidence in the scheme type, the Pensions Administration Standards Association (PASA) has said.

Guidance published by the association yesterday (10 October) said some transfers were taking months to complete and processes were "lengthy and opaque".

PASA warned that schemes regulated by the Financial Conduct Authority "need to be mindful of changes - when they are transferring or receiving schemes - potentially arising out of the Consumer Duty consultation."

However, is for pensions administrators to better communicate hold-ups to all parties involved in a transfer, financial advisers included, PASA said.

The association added that time could be saved for advisers if they received required information "promptly" and in a standardised form.

"We recommend [pension] administrators adopt the industry-developed transfer template and ensure both the scheme and saver level information sections are fully completed and sent to savers' advisers on request," it stated.

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