On the go: The Pensions Ombudsman has published guidance for trustees when appointing financial advisers for their members, and how they can protect themselves from complaints.
According to TPO, “consideration should also be given to how a panel of firms may be selected in a manner which is demonstrably impartial”, and which does not conflict with the 2021 competition law.
“A scheme establishing an [independent financial adviser] panel should, where appropriate, seek professional advice before proceeding,” the document read.
TPO’s document said trustees should give “careful consideration” to the criteria under which IFA companies are to be selected and retained or replaced.
These include but do not restrict the level of charges, reputation, required regulatory permissions, any past regulatory sanction, particular area of expertise, geographical location and customer satisfaction reviews.
Where poor financial advice is given by an IFA contained on a list provided by a pension scheme administrator or other person, and the member suffers a loss, they may complain against the adviser to the Financial Ombudsman Service.
TPO stated that the member may also consider the pension scheme administrator has not undertaken sufficient due diligence in preparing the list of IFAs, and as such may make a complaint to TPO in the basis of maladministration.
To protect against complaints, trustees should make sure pension schemes check the IFA status with the Financial Conduct Authority and have no reason to believe the adviser should not be able to provide competent, regulated advice.
Additionally, TPO stated it would assess each complaint on its own facts, and that it may link complaints to any other issues that may impact on any final decision.
