PENSION TRANSFERS AND OPT‐OUTS: GUIDELINES ON HOW TO GET STARTED IN PUTTING MATTERS RIGHT
| Date | 01 March 1994 |
| DOI | https://doi.org/10.1108/eb024808 |
| Pages | 211-214 |
| Published date | 01 March 1994 |
| Author | ALAN BRENER |
| Subject Matter | Accounting & finance |
PENSION TRANSFERS AND OPT-OUTS: GUIDELINES ON
HOW TO GET STARTED IN PUTTING MATTERS RIGHT
Received: 10th
June,
1994
ALAN BRENER
ABSTRACT
The Securities
and
Investments Board (SIB)
issued
a paper
addressed
to
self-regulating
organisations in May 1994 titled 'Past
Pension
Transfers
and
Opt-Outs:
Model
Guidance on Priority Cases and Com-
plaints'.
This
set out
in
broad terms
what product
providers
and independent financial advi-
sers
should start doing now in
connection
with past pension
transfers
and
opt-outs.
This includes the
criteria
for identifying
high
priority cases
and
the guidance
indi-
cates
what
action
should
be
taken to
deter-
mine whether investors had been
mis-advised.
The SIB paper sets the
objectives for
the
exercise;
the difficulty is knowing how to
actually get started on the work. This is
addressed
in the following paper which
describes the need to set
up
a project team
to
do the
work,
a
computer database to analyse
the information and the
mechanism
for
identifying
high
priority
files.
A
classifica-
tion system
is
outlined together
with
details
on how
best
to
contact investors
to obtain
the
best response rate
with the most useful
information. Finally, the issue of com-
plaints is briefly
addressed.
PROJECT TEAM
Reviewing, possibly, several thousand
client files involving pension transfers
and opt-outs is going to take a long
time — possibly many years — and
whoever takes charge of this will
need to devote themselves to the task
full-time. They will need a team to
undertake the project. The team will
need to be properly trained and this
will also take time.
COMPUTER DATABASE
The next step is to set up a computer
database supported by the necessary
computer team. This wil be the focal
point for the project. All the client
and pension policy and scheme data
will need to be entered on this data-
base.
The database information
should be capable of being analysed
in a number of different ways to see
if particular patterns can be iden-
tified.
IDENTIFYING FILES
The next stage is to identify the per-
sonal pension policies and the related
211
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