Related provisions for PERG 2.7.16H
1 - 5 of 5 items.
This section does not apply:(1) to a firm giving regulated advice to a retail client on options to access their pension savings;(2) if the firm has already provided the retirement risk warnings to the retail client in relation to their decision to access their pension savings and the firm has reasonable grounds to believe that the retirement risk warnings are still appropriate for the client.
(1) The purpose of this section is to ensure that a firm, which is communicating with a retail client about a pension decumulation product, gives appropriate retirement risk warnings at the point when the retail client has decided how to access their pension savings. (2) If the retail client has not yet decided what to do,2 the firm should consider whether it is required to signpost the pensions guidance under COBS 19.4.16R2 (signposting pensions guidance) and whether it may be
(1) The first step is to ask the retail client whether they have received pensions guidance or regulated advice:(a) if the client says that they have, the firm must proceed to step 2; or(b) if the client says that they have not or is unsure, the firm must explain that the decision to access pension savings is an important one and encourage the retail client to use pensions guidance or to take regulated advice to understand their options at retirement.(2) If, after giving the explanation
2If the value of the retail client’s pension savings is £10,000 or less and there are no safeguarded benefits, the firm:(1) is not required to ask questions to identify whether any risk factors are present; and(2) must prepare appropriate retirement risk warnings based on the risk factors relevant to each pension decumulation product it offers to enable retail clients to access their pension savings.
At step 3:2(1) if the value of the retail client's pension savings is £10,000 or less and there are no safeguarded benefits, based on how the retail client wants to access their pension savings, a firm must give the client the appropriate retirement risk warnings prepared under COBS 19.7.9AR(2); and 2(2) in all other cases, a firm must give the retail client appropriate retirement risk warnings in response to the client's answers to the firm's questions.2
4For the purpose of COBS 19.4.6R(1) where a firm provides its own statement as the fact sheet, it should include materially the same information in the Money Advice Service fact sheet about:(1) the following options for accessing pensions savings, even if they are not offered by the firm:(a) pension annuity;(b) drawdown pension; and(c) uncrystallised funds pension lump sum payments;(2) the main features, benefits and risk factors relevant to the options for accessing pensions
4A firm should ensure that when it makes any communication with a retail client concerned with the client’s options to access their pension savings it has regard to the fair, clear and not misleading rule, the client’s best interests rule and Principles 6 and 7. In particular a firm should:(1) refer to the contents of the Money Advice Service fact sheet to identify what information might assist the client to understand their options;(2) consider whether it needs to include or
5Under article 53E of the Regulated Activities Order (Advising on conversion or transfer of pension benefits), advising a person (“P”) is a specified kind of activity if the advice:(1) is given to P in their capacity as:(a) a member of a pension scheme; or(b) a survivor of a member of a pension scheme;where P has subsisting rights in respect of any safeguarded benefits; and(2) (a) convert any of the safeguarded benefits into different benefits that are flexible benefits under
But the exclusion applies only if the principal purpose of the publication or service is not:(1) to advise on securities or structured deposits9 or relevant investments or P2P agreements or7home finance transactions1 or amounts to carrying9 on advising on conversion or transfer of pension benefits; 5 or15(2) to lead or enable persons:(a) to buy, sell, subscribe for or underwrite securities, structured deposits9 or relevant investments; or1(aa) to enter into a relevant article