Article Summary

The transfer of pension funds is an action that has become a trend in recent years. By transferring pension funds, workers can get complete flexibility and control over their funds.

The regulations in the United Kingdom clearly state that a Pension transfer specialist (PTS) is required for all transfers equal to or more than £30,000. PTS is a UK licensed financial advisor with extra qualifications instead of a pension DB scheme.

Ideally, the PTS service is utilized for those planning to transfer their Final Salary pension to a personal pension scheme. Before using PTS, the question that someone commonly faces is whether PTS services are expensive? Or is the PTS worth the price?

In one of our YouTube videos, our CEO and Independent Financial Advisor, Dominic James Murray, explains how someone can become a Pension Transfer Specialist as well as discuss the Pension Transfer Specialist briefly. Watech the video below.

Why Does PTS Have To Be UK-Licensed?

Many expats seek financial services outside the UK because they fit in. However, you need a UK PTS to take care of your retirement fund in the UK administration area. The goal is to get more comprehensive assistance per UK regulatory conditions.

The Financial Conduct Authority (FCA) makes it mandatory for workers with a cash equivalent transfer value (CETV) of more than £30,000 to use PTS services as a professional mentor.

With regulations in the nation, UK-licensed PTS will make it easier for workers to transfer their pension funds to another pension scheme. Furthermore, UK-licensed PTS is the best solution to avoid the risk of transfer failure or misunderstanding of the rules.

What Is the Role of UK PTS in Moving the DB Pension Scheme?

UK PTS are people with the qualifications, understanding, and experience who are highly competent to provide pension fund financial advice. Various information and advice obtained from PTS will revolve around your annuity amount, taxes, and financial data.

With your retirement financial information and data, PTS will provide considerations such as an explanation of the condition of the pension scheme, financial forecasts in the future, investment prospects, the UK economic situation, and much other advice. With various information, data, considerations, and advice, PTS will do the calculations that are applied to whether you will make a pension transfer or not.

How Many Pension Transfer Specialists Are There in the UK?

Based on data released by the Financial Conduct Authority (FCA), from 2018 to 2020, 1521 firms had permits as DB advisors for pension scheme transfers. That number is likely to change as the need for pension transfer advisors evolves.

Although market demand is high, the change in the number of firms licensed as pension transfer advisors is not too significant. The difference in the number is not substantial because becoming a PTS takes a long time and requires various rigorous tests.

The lengthy tests are intended to protect you as the clients. Furthermore, the tests also to ensure that the given financial advice regarding you UK Pension Transfer is genuinely based on calculations and the best financial considerations.

UK TPS Qualification As per FCA Regulations

FCA explained that TPS are individuals who have passed a number of The Training and Competence Sourcebooks. Thereafter, TPS must work in a company to advise pension transfers, pension conversions, and pension opt-outs or to check such advice according to COBS 19.1.

The trend of DB transfer pension schemes requires the FCA to issue several regulations and guidelines for providing financial advice to pension fund owners. The FCA regulations and guidelines enable the company to provide the best and most appropriate advice for your circumstances.

Several essential qualifications that a PTS must possess are having to pass numerous qualifications, namely CISI (The Chartered Institute for Securities & Investment) exams. CISI exams consist of:

  1. Take at least three exams to get RDR Level 3 qualified status
  2. Minimum one exam to get PTS Exam level 6 status

The candidate can only take the CISI exam if they have met the FCA qualifications related to regulations and ethics, investment and risk, and retirement planning. So, the candidate can get status in the Statement of Professional Standing for Retail Investment Products.

How To Choose the Right Pension Transfer Specialist? Pension Transfer Specialist?

There is no specific benchmark for you or your workers to determine the best PTS. Moreover, the small number of PTS in the UK makes this profession a target for many people.

However, you can use the FCA guidelines as a benchmark for choosing PTS that work according to regulations and match your retirement conditions.

The considerations below are some FCA guidelines that PTS should follow when reviewing and providing advice regarding pension fund transfers:

  1. Obedient to Section 48 of the Pension Schemes Act 2015.
  2. Recommendations based solely on critical yield.
  3. Permission and responsibility for the advice
  4. Willing to liaise with foreign advisors if needed.
  5. Have alternative advice other than pension transfer.
  6. The advice given is based on the personal condition of each pension recipient.

Of course, you can only get the FCA practice and guideline information above if you have already contacted PTS.

Therefore, you can choose a company that provides free consulting services at the start. With a free consultation, you will find out how far PTS will take your information and how it will explain the best advice. That’s when you can get a PTS projection that is suitable and professional according to your needs.

Cameron James is one of the trusted Pension Transfer Specialists in the UK Pension Transfer industry. Talk with one of our IFAs for a free initial consultation. You can contact and consult with one of our qualified IFAs through the link on the right side.

Our Founder & CEO -
Dominic James Murray

I have been in the UK Pension Transfer industry for over 11 years, and have witnessed seismic changes in the UK Pension rules over the course of that decade. Most to the benefit of the UK Chancellor or to Chequer!

My 5 years as CEO of Cameron James, have certainly been the most rewarding. My goal, has been a simple one. Provide clients with transparent financial advice on a low-cost basis, for them to make informed decisions to protect their families best interests.

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We have worked hard for our reputation and we will be maintaining it.

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