Earlier this year the FCA consulted on proposed changes to its rules regarding pension transfers which will be necessary following an amendment to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO). The amendment makes advising on the conversion or transfer of safeguarded pension benefits into flexible benefits a regulated activity. The FCA also consulted on related changes to ensure that its Conduct of Business sourcebook pension transfer requirements will apply to all pension transfers, regardless of when the transferred benefits are being accessed.
The FCA has now published Policy Statement 15/12: Proposed changes to our pension transfer rules, feedback on CP15/7 and final rules (PS15/12). The new rules described in PS15/12 came into force on 5 June 2015 and will primarily be of interest to financial advisory firms advising on pension transfers and pension providers transferring or receiving pension benefits.