2017年-FCA英国金融行为监管局_proposed_changes_to_our_pension_transfer_rules_feedback_on_cp15_7_and_final_rules_ps15_12_3页_118kb

Summary of Regulator Assessment: Qualifying Regulatory Provisions

Core Content

The document outlines the regulatory assessment of the proposed changes to pension transfer rules under the FCA's Policy Statement PS15/12, which was published on 8 June 2015 and implemented from that date. These changes were introduced in response to the UK's pension freedoms, which allowed members aged 55 and over to access their Defined Contribution (DC) pension savings immediately. The aim was to ensure that members of Defined Benefit (DB) schemes, who lacked this flexibility, received proper advice before transferring their benefits to DC arrangements.

Main Points

• Background:
  The pension freedoms, effective from 6 April 2015, gave DC pension savers greater flexibility. This led to an expectation that more DB scheme members would seek to transfer their benefits to DC schemes. To protect these members, the Government required that all transfers from DB to DC schemes be advised by a Pension Transfer Specialist, as part of a regulated activity under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO).

• Proposed Changes:
  The FCA proposed changes to the rules in Consultation Paper CP15/7 (April 2015), which were finalized in Policy Statement PS15/12 (June 2015). The key changes include:

  • Requirement for Pension Transfer Specialist: All advice on transferring DB pension benefits to DC arrangements must be provided by a Pension Transfer Specialist.
  • Exemption for Immediate Crystallisation: The Transfer Value Analysis (TVA) requirement is removed for transfers that result in immediate crystallisation of benefits at the DB scheme's normal retirement age (NRA).

• Affected Businesses:
  The new rules primarily affect UK Investment Managers. The FCA regulates approximately 2,000 UK investment managers who may be impacted by the rule change. The change was intended to create a level playing field by allowing all investment managers to disclose vote holdings at the EU minimum threshold of 5%.

• Implementation and Commencement:

  • Date of Assessment: 8 December 2016
  • Commencement Date: 8 June 2015
  • Origin: EU
  • Cutting Red Tape Review: Not included in this assessment.

Key Information

• Impact on Business:
  The rule change has a minimal monetary impact on investment managers. While the administrative burden has been reduced, the cost of notifications is not significant enough to result in substantial savings. The primary benefit is the creation of a level playing field in terms of disclosure requirements.

• Cost and Benefit Breakdown:

  • Estimated Business Net Present Value (2016): £7.3m
  • Net Cost to Business (EANDCB): -£0.8m
  • BIT Score: -£4.0m

• Additional Information for BIT Validation:
  The new requirement applies to all individuals advising on the conversion or transfer of pension benefits. It is estimated that this will lead to a potential need for approximately 130 additional Pension Transfer Specialists.

Conclusion

The proposed changes aim to ensure that pension transfers from DB to DC schemes are properly advised, protecting members from potential loss of benefits. By removing the TVA requirement for transfers at the normal retirement age, the FCA has simplified the process for certain cases. The impact on the market is considered minimal, with the primary objective of regulatory consistency and consumer protection.