SIB issues guides to transfers and opt-outs

THE Securities and Investments Board, the leading City watchdog, has published two guides on pension transfers and opt-outs, writes Caroline Merrell

The factsheets outline key factors to consider when deciding whether to transfer or opt out of an occupational pension scheme.

The publication of the leaflets follows revelations that thousands of people were wrongly transferred out of occupational schemes into personal pensions.

The guide on pension transfers lists questions to help establish whether the financial adviser recommending the transfer has given the correct information.

They include: Has your adviser discussed in detail with you your personal circumstances and financial position? Do you understand what benefits you may be giving up if you leave the scheme? Have all the options been explained to you?

The other leaflet, covering opt- out schemes, concludes that you will nearly always be better off if you stay in, or join, your employer's pension scheme.

SIB's initiative has been attacked by IFA Promotion, the body that promotes independent financial advice, for making little distinction between opt-outs and transfers.

Single copies are available from SIB free. Send a stamped addressed envelope to Pensions Factsheets, Securities and Investments Board, Gavrelle House, 2-14 Bunhill Row, London EC1Y 8RA.