In a joint statement published on July 5, the bodies said that the DWP is currently reviewing the Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021, which came into force six months ago. A report will be published within 18 months of the rules having gone live.
The regulations allow trustees to pause or block pension transfers if they deem it necessary, by raising a “red flag”.
In addition, they can raise an “amber flag” if they suspect a potential scam, which will mean the member will have to provide evidence they have taken specific scam guidance from the Money and Pensions Service before they are allowed to transfer.
However, this has resulted in many transfers being delayed.
In February, the government warned that it may amend the rules so that low-risk overseas investments would no longer be flagged.
TPR, meanwhile, said that it had updated its guidance on transfer requests to address these concerns.
“The regulations are not intended to impose additional burdens on schemes or administrators, or to impact on standard business practices,” the statement read.
“Likewise, they are not designed to offer protection against normal market volatility.
“We understand that concerns have been expressed about applying the regulations where overseas investments or small-scale incentives feature in the transfer,” it continued.
The regulator’s new guidance suggests that trustees may wish to retain records of…
