The Sovereign Group has been contributing to the review and upgrade of the Pension Scams Industry Group’s (PSIG) voluntary Code of Good Practice, which was published as version 2.2 in April. The changes have been designed to make the document more user-friendly and to reflect recent regulatory and legal developments.
The Code is a guidance document for pension providers to follow in relation to transfer requests and includes standard due diligence requests and procedures that should be followed when considering and actioning requests to transfer.
The revised Code is now divided into five components, including a framework document, practitioner and technical guides and a resources pack. The update is the third in less than three years, following the code’s original publication in 2015.
It now includes specific calls to action for trustees and administrators of pension schemes, including a recommendation to consider calling pension scheme members during the due diligence process and also, when sufficient concerns of pension scamming have been identified, that a final telephone call should be made with the member before any transfer payment is made.
Trustees and administrators should also report all transfers of concern, not just those that are refused. The code also says appropriate management information should be developed and maintained on transfers, including where transfers are refused, cancelled by a member when concerns have been raised, or paid under discharge at the insistence of the member.
Sovereign supports the Code of Good Practice and continues to work with PSIG to ensure its processes, procedures and requirements in relation to pension transfers are fair, with supporting rationale and with the member’s best interests as priority.
The Code can be accessed at http://lgn1425817844.site-fusion.co.uk/