FT Adviser has reported that the fallout from the scandal of defined benefit (DB) transfers from the British Steel Pension Scheme (BSPS) has prompted pension trustees to appoint independent financial advisers to help their members.
Jonathan Watts-Lay, Director, WEALTH at work, discusses this topic at the Pensions Management Institute (PMI) conference.
He comments; “The process isn’t identical for all [members], some of them will have a mix of guidance and advice, some will just go straight to advice. Who pays for what might be different from scheme to scheme.”
Watts-Lay adds; “The key thing that has changed is that risk is now on the other side, especially after what happened with British Steel. When you stand back from that you ask if it is better that the Trustees don’t put any process in place and just leave everyone to do what they are going to do, or is it better to do due diligence, and to put a process in place?”
He states; “Clearly, recent history will tell us that the latter is going to be the way to go.”
To read the full article in FT Adviser, please click here.