David Neilly is a steelworker who has represented Port Talbot members of BSPS at Parliament.
His words count; we talk of a pensions “industry” but this is from a man of Ravenscraig and Port Talbot. It is published with David’s permission.
Mr Frank Field Chair of the Pension Freedom and Choice Select Committee.
Season greetings to you Chair and the members of the Pension Freedom and Choice Select Committee, In order to quantify the contribution that the BSPS Members make to the UK economy, I am sending this email to you, from my control room in the steelplant in Port Talbot at 25/12/2017, 7am to 7pm day shift.
As the new Pension Freedom and Choice Act takes its infantile steps the current Defined Benefit Schemes must also work towards the flexibility that can be realized from the Pension Freedom and Choice Act. Why aren’t the Defined Benefit pension schemes more flexible in allowing early or partial access to the member’s funds?
We the BSPS members have now found ourselves in a position where the Financial Services Sector are now actively avoiding our requests to transfers. With FCA reducing the amount of qualified practitioners due to client capacity and or non-compliance issues. We now have to go further a field to find an IFA to facilitate a pension transfers transaction request, which increases the likelihood of compliance breaches by financial practitioners.
In order to give the level of protection to the Defined Benefit Scheme members there is a need for a safe haven so members can exercise their Pension Freedom and Choice options. The creations of a single regulatory body to authorize the Defined Benefit transfer transaction; this would work by an IFA requesting a transfer pack from the centralised source. The Defined Benefit transfer pack would contain all the necessary documentation required to facilitate the transfer protocol.
This Authorized body would be responsible for identification, implementation and execution of the Defined Benefit transfer transaction via the Pension Scheme Trustees. As the intermediary, this would lead to improved processing and transparency and help identify the non-compliant practitioners quicker.
By creating this Authorised regulatory body its prime objective would be to highlight the financial practitioners who do a deliberate act entrapment, manipulate, scam, the Defined Benefit Scheme member, and fund-managers who offer artificial enhancements to the introducers, mitigate the rogue factor.
The financial services have enough control measures in place to reduce the likelihood of a repercussion of the red flag events seen with BSPS transfer. In order to further improve the reaction time within the compliance system could the digitization of the Defined Benefit transfer transaction aid the current measure data analysis for identifiable traits for risk adverse products that warrant action by Financial Conduct Authority?