The Pensions Scams Industry Group (PSIG), the voluntary body set up to support trustees, providers and administrators in combating pension scams, has launched an ‘Interim Practitioner Guide’ which details the key due diligence steps to undertake when assessing a pension transfer.
The guide reflects the position following the 2021 DWP Regulations on transfers.
The guide explains the Regulations, the risks, the options and the steps that practitioners should take in order to be able to comply with them.
Some of the key areas covered are ‘clean lists’, overseas investments, statutory and discretionary transfers (and the red and amber flag system).
Alongside the guide there is a short summary document explaining the key points.
PSIG was established in 2014 to help protect pension scheme members from scams.
Its chair Margaret Snowdon OBE said: “Our original intention had been to update our Code of Good Practice and its related documents to coincide with the Regulations.
“The Regulations gave the industry the power we need to combat scams, but a few clauses introduced some confusion.”
She said that after months of debate and consideration, PSIG decided to update and publish one part of the Code, the Practitioner Guide, on an interim basis and amend the full Code once the Regulations are clarified following their formal review by the DWP.
Ms Snowdon said PSIG will publish a final version along with an update to the other Code documents when the Regulations are reviewed later this year.”
She added: “Putting this guide together has been quite a task – PSIG is a voluntary, multi-disciplinary, industry group so there have been several different views on how best to reflect the Regulations and differing industry practice to take into account.
“But, driven by our common passion of protecting members from harm, we have produced this Interim Guide on which we all agree – and we have tried to make it as practical as possible, knowing very well that the industry is grappling with a lot at the moment.”
Where the risk of a scam is low, the preference is, as always, to make the member transfer request as quick and easy as possible.
Minister for Pensions Laura Trott said: “PSIG’s Interim guide will be a great asset for pension practitioners and help further our collective efforts to stamp out scams.”
The guide is available to the industry as a whole and can be found here
