The Government introduced new regulations effective from 1 December 2021 which mean one of two conditions must be satisfied before any transfer can proceed from a scheme like yours. If either of the conditions are not met, the statutory right to a transfer is removed and, if the Trustee board has concerns, we can stop the transfer proceeding.
Condition 1 is satisfied if the transfer is to:
- a public sector pension scheme
- an authorised Master Trust, or
- an authorised collective money purchase scheme
Condition 2 for all transfers that don’t meet the first condition – the Trustee must decide:
- if there is evidence of an ‘employment link’ to an occupational scheme
- if there is proof of residency for an overseas pension scheme
- if there are any red or amber flags present
Red flags
- Failure or refusal of member to provide requested evidence.
- Failure to take specified guidance from MoneyHelper.
- Advice received from an IFA without correct regulatory permissions.
- Member was subject to unsolicited contact regarding the transfer.
- Member was offered an incentive to transfer.
- Member was pressured to make a transfer.
- Any case with a red flag cannot proceed.
Amber flags
- Incomplete response to requests for evidence.
- No evidence of employment or residency link (where applicable).
- Evidence doesn’t appear genuine or not provided by the member.
- Investments in the receiving scheme are high risk, unregulated, unclear, complex or unorthodox.
- Unclear or high fees or overseas investments in receiving scheme.
- Sharp rise in requests from the same adviser or receiving scheme.
- Any case with an amber flag can only proceed if the individual can demonstrate they’ve taken expert scams guidance from MoneyHelper.
Where there are no red or amber flags, the Trustee must arrange the transfer.
