Pensions

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Ready or not, here comes the Consumer Duty

Since July 2022 when the FCA published its rules and guidance to implement the Consumer Duty, much ink has been spilled on what it will mean for affected firms. Now, with the clock ticking down to implementation on 31 July 2023, the FCA has published the findings of its review of a number of larger … Continue Reading

DWP sets out “Stronger Nudge” regime to protect savers and rein in Pension Freedoms

Following successful trials, the Department of Work and Pensions (“DWP”) announced proposals last  Wednesday to introduce a “Stronger Nudge” regime, as part of a package of measures aimed at helping savers make better-informed decisions when it comes to accessing their pension savings, and to further protect them from scams.… Continue Reading

Upper Tribunal decides that tax relief will only be available on monetary pension contributions

Earlier in May, HM Revenue & Customs successfully appealed against a First-tier Tribunal decision that Sippchoice Ltd was entitled to income tax relief at source in relation to its self-invested personal pension scheme (“SIPP”) contributions. The Revenue and Customs Commissioners v Sippchoice Ltd [2020] UKUT 149 (TCC) decision means that tax relief will only be … Continue Reading

Lack of Data Impacts Efforts to Fight Pensions Scams

The Pensions Policy Institute (“Institute“) has said that a lack of comprehensive data on the number and scale of pensions scams, places limitations on the industry’s ability to effectively protect savers. According to the Institute, “victims of pension scams [are] losing more than £80,000 on average.” There is growing concern from the Institute that during the COVID-19 … Continue Reading

Relief for SIPP providers as Court hands down long awaited judgment in Carey Pensions case

Yesterday, the Court finally gave judgement in Russell Adams v Options SIPP UK LLP, a significant test case on the potential liability of an execution only SIPP provider to an investor whose underlying investment in the SIPP had incurred significant losses. In a 99 page judgment, His Honour Judge Dight decided that the Defendant was … Continue Reading

FCA publishes business plan for 2020/21

The FCA yesterday set out its business priorities for the years ahead, focussing in part on the unique challenges presented to the financial services industry by the Covid 19 pandemic. In this blog we look at three issues that the FCA’s Business Plan for 2020/21 pays special attention to, the regulatory response to the Covid-19 … Continue Reading

Not a risk worth taking – FCA fines and bans pensions’ advisor

Earlier this month, the FCA fined a former advisory firm director £23,400 for overseeing the transfer of £112m of pension retirement funds in to risky investments. The FCA is concerned about unsuitable advice around pensions’ transfers and this latest action sends another strong regulatory message to the market about the FCA’s “get tough” approach towards … Continue Reading

COVID-19 hits UK Ombudsman services

The Pensions Ombudsman (“PO”), the independent body that investigates complaints about pensions’ administration, has announced that it will not be able to process any new complaints for the foreseeable future. The COVID – 19 lockdown has meant that the PO can no longer collect or deal with post, although phone lines remain open between 10.00 … Continue Reading

FCA begins contacting pensions advice firms over suitability and value concerns

The retirement income market is a key area of FCA focus, particularly the suitability of both products and advice as the industry adapts to pension freedoms. In the FCA’s Sector View Report published on 18 February 2020, Pension freedoms are highlighted as one of the continuing key drivers of change in the sector with more … Continue Reading

Court refuses defendants’ document request at £86million FCA pensions’ trial

Last week, the Court prevented two unregulated introducers and their directors (the “Defendants“) from seeing documents linked to an investigation by the FCA into pensions’ providers and financial providers that did business with the Defendants. The Defendants are currently on trial in the High Court and stand accused of having given unauthorised and misleading advice about … Continue Reading

Court reviews summary judgment jurisdiction in dispute over pension plan guarantee

The recent High Court decision in Caribonum Pension Trustee Limited v Pelikan Hardcopy Production AG [2018] EWHC 2321 (Ch) will provide some comfort for pension plan trustees owed money by insolvent sponsoring employers by allowing trustees to pursue guarantors within the same group for those debts. What was contended to be an abuse of Court process … Continue Reading

FCA takes steps to improve pension transfer advice

Safeguarding pensions and retirement income have been high on the FCA’s agenda for a while now. In the FCA Business Plan for 2018/19 it said: “We want to ensure that consumers are equipped to make good decisions to fund their retirement such as through appropriate advice or guidance, and can access good quality, value for … Continue Reading
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