Valuing pensions for the advice requirement and introducing new consumer protections

This is a consultation on regulations which:

• simplify the pension valuation process that determines who is required to take financial advice
• ensure adequate consumer protections are in place

The draft regulations:

• simplify the process for determining who is required to take financial advice
• introduce tailored risk warnings which explain the likely impact of surrendering potentially valuable guarantees
• provide for transitional arrangements where members have requested a transfer value in the run-up to these regulations coming into force

This consultation follows an earlier call for evidence on the advice requirement published with a consultation on the Occupational and Personal Pension Schemes Miscellaneous Amendments Regulations 2016.

As part of the consultation exercise, we’ve published here a draft version of an impact assessment to help us better understand the effects of the proposed changes. The consultation will inform any eventual submission to the Regulatory Policy Committee.