How we’re dealing with DB pension transfers

Defined benefit (DB) transfers are very topical just now, so we’re setting out our stall and detailing how we’ll accept transfers going forward.

We’ve identified the types of business that we will and won’t accept, along with some key points about how we’ll support these transfers and what information we need from you.

A transfer so long as the advice has been provided or checked by a pension tick
transfer specialist and it's being submitted by an adviser firm that has
the appropriate pension transfer and opt out permissions.

A transfer in certain circumstances, where the exclamation markceding scheme doesn’t support partial transfers, and once we’ve received all of the transfer, the intention is that some will then transfer away. If this is what’s planned, we’d ask you for more information before accepting this.

We may also accept a transfer where the client has received a personal recommendation, yet they’ve decided to go against this advice and continue with the transfer, also known as an ‘insistent client’.

A transfer if the adviser firm doesn’t have the appropriate crosstransfer permissions, regardless of whether the adviser is checked by a pension transfer specialist or not.

We’ll also not accept any non-advised or execution only transfers or any transfer that’s only going to be with us for a short period of time before it’s transferred elsewhere.

A few things to remember:

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You'll need to give your client a personalised recommendation which clearly shows their long term investment strategy - which is typically around 15 years or more.  If you're accepting referrals from other firms, it's really important that you're both aligned on your client's long term investment solution as you'll need to demonstrate that your client will have sufficient retirement savings to last throughout their retirement years.

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We’re defining an ‘insistent client’ as someone who you’re providing a personal recommendation to as part of an advised sale but they’re choosing to go against this advice.  In this instance, you’ll only be facilitating the transfer, so you can advise a suitable product and investment choice.

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We believe in doing the right thing by our customers, so we’ll review all defined benefits business, including the adviser charge levels, to see if there are any common trends which could have a negative impact on Royal London or our customers.  In some circumstances, we may ask for copies of your client agreements and suitability reports.

Completing the paperwork:

We want your clients to receive their guaranteed cash equivalent transfer value as quickly as possible. So if we receive a fully completed application form, including any additional information that’s needed, at least 2 weeks before the end of the guaranteed period, we’ll ensure the ceding scheme receives all of the documentation they need from us before the guarantee ends.

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.