when is a pension transfer effected
seanhurst
Member
Afternoon, I am looking for help on what the above actually means. our compliance state that the suitability report should be issued before apps signed, which i get and we normally do, but COBs state the below;
COBS 9.4.4R01/10/2020RP
A firm must provide the suitability report to the client:
1. (1)
in the case of a life policy, before the contract is concluded;
2. (2)
in the case of a personal pension scheme or stakeholder pension scheme that is not a life policy, where the rules on cancellation (COBS 15) require notification of the right to cancel, no later than the fourteenth day after the contract is concluded;
3. (2A)
in the case of a pension transfer or pension conversion, in good time before the transaction is effected; or
4. (3)
in any other case, when or as soon as possible after the transaction is effected or executed.
What do points 3 and 4 actually mean?
Comments
We too will always look to provide advice BEFORE application / contribution / investment and give time for thinking / checking understanding.
'In good time'. Always a bit of a judgement call. Clearly, the day the transfer app is signed is not going to meet this, whereas two weeks beforehand almost certainly does. Somewhere between those two you move from ok to not ok but where that is is something for you to decide (& defend if required).
As regards 9.4.4.3 we always endeavour to avoid this. The issue has only rarely arisen around the end of a tax year when a client has finally responded to suggestions of using ISa or PP allowances a few days before the tax year ends so the transaction needs to be done before SR issued; however, we will always get his out well before any cancellation period has expired.
This is an example of noting having a details and prescribed set of rules but rather a set to build your own processes / procedures from.