In summary, advice on a transfer at any time must balance risk, value for money and the client objectives in order to arrive at a good outcome. There is something of a sale mentality stimulated by the current level of transfer values, but like a jumper you might have bought on Boxing Day, it is only a bargain if you like it, need it and it fits.
Finally, while the main risk is often considered to be the risk of transferring, not recommending a transfer when it would have been in the client’s best interests carries equal risk. Whatever your recommendation, your file should adequately demonstrate how you reached your conclusion and stand up to scrutiny in the distant future. If ultimately the client insists on an alternative course of action, check the client has understood the potential disadvantages and follow the FCA guidance on insistent clients.
Simon Thomas is head of policy of Tenet Group
Key points
A question about transferring is an indication that a client has already made up their mind.
Transfer values are higher than they have been in the past.
The client must also put be in an informed position about any risks.
