Defined benefit (DB) pension transfer reporting is set to be cut back to once a year, according to a new consultation by the Financial Conduct Authority (FCA).
Under the plans, announced this week, financial advisers in the UK will need to share DB transfer activity reports annually instead of half-yearly, which is the current requirement. The FCA said the move should benefit around 11,000 firms.
The regulator said that supervisory interventions and regulatory changes, such as the ban on contingent charging, have contributed to a significant decline in the volume of DB transfers.
“Given these developments, we propose to amend the frequency of Section M and move to an annual reporting cycle,” it said in its consultation document.
“This reflects the reduced risk while ensuring that we continue to receive the information necessary to maintain effective oversight of pension transfer activity.”
It added: “We are satisfied that we will maintain our oversight of activity in this market and continue to identify firms involved in pension transfer activity through this return.”
