"There are lots of members who are right now, or could in the future, be making poor choices."
The Pensions Administration Standards Association (PASA) has launched new DB transfers guidance to support its members.
The guidance aims to help members achieve the right balance between member protection and an individual’s right to take their pension in a different shape or form, via a flexible arrangement.
PASA aims to achieve faster, safer transfers with improved efficiency and transparency.
Last month, the FCA investigated firms carrying out defined benefit transfers, finding that "too much advice... is still not of an acceptable standard".
The regulator found that firms are recommending that large numbers of consumers transfer out of their defined benefit pension schemes despite the FCA’s stance that transfers are likely to be unsuitable for most clients.
A survey of 3,015 firms found that almost half (1,454) had recommended 75% of more of their clients to transfer
The FCA says it will now "focus its supervision work to drive up the quality of advice".
Margaret Snowdon, sponsor of the DB Transfers Working Group at PASA, commented: “We are always mindful of the delicate balance between member protection and an individual’s statutory rights, and the fact they shouldn’t be hindered when making legitimate transfers.
“There are lots of members who are right now, or could in the future, be making poor choices. It is in our ability, as industry experts, to help by coming together and working to implement this Guide to Good Practice creating faster, better communicated, more efficient and more cost effective approaches that scheme administrators and the industry as a whole, can execute."
Guy Opperman MP, Minister for Pensions and Financial Inclusion, added: “Transfers give people flexibility when it comes to their pension pots, and they must be fast and safe. This guidance gives the clarity needed - for both schemes and members - to ensure they’re done efficiently and transparently. It is a must-read for anyone with a stake in the pension transfer process.”