Pension switch principles should apply to entire market-Skandia

The pension switching review has implications for the entire market including platform to platform re-registration, Skandia says

According to the group, the principles of the report - which says advisers must assess a customer's attitude to risk and personal circumstances and explain and justify additional costs - should apply to all forms of investment switching activity.

The company says these principles are very relevant for the platform market where advisers are considering moving client assets from a fund platform to a full wrap proposition.

"There is a lot of focus on the Retail Distribution Implementation Programme and how the FSA believes this will improve standards within the industry," says Peter Jordan, head of proposition marketing at Skandia.

"However, recent events suggest that those standards are already required and that the FSA, empowered by Treating Customers Fairly (TCF), is making immediate progress with a more prescriptive approach which will provide very clear guidance in order to raise standards of advice.

"We fully support this drive and expect the principles behind the pension switching review to be extended to the platform market. As this is a virtual certainty, compliance aware advisers will already be reviewing their platform partners to make sure they are working with a company that provides them with the best combination of price and support to make sure that their advice rises to the challenge of TCF," he says.

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