The taskforce will create a common set of professional standards, encourage the sharing of good practice and produce a code of conduct to give clear guidance in areas of ambiguity, PFS chief executive Keith Richards explained.
“The sector is predominantly made up of small firms, who are often not in a position to benchmark themselves against the wider market.
“Consequently, we have been liaising with the government and the regulator to facilitate alignment and unity on key issues to produce the best possible consumer outcomes at all times,” Richards said.
We are also seeking to ensure that the unintended consequences of pension freedoms do not unfairly impact the advice profession at a future point.”
Experts and professionals
Among those joining Richards at the two inaugural gatherings were:
- former pensions minister Sir Steve Webb (Royal London),
- Margaret Snowden OBE (Pensions Administration Standards Association),
- Simon Chrystal (Workplace Solutions),
- PFS board member and former FCA technical specialist Rory Percival, and,
- Specialists and PI insurers from across the sector.
Membership of the group is still evolving, with Sue Lewis from the Financial Conduct Authority’s consumer panel and Michelle Cracknell from The Pensions Advisory Service (TPAS) confirmed as the latest high-profile participants.
Meetings will be held every two months going forward.
Trust and reputation
Richards continued: “Demand for professional advice continues to grow in the wake of pension freedoms, coupled with the evident financial planning needs of an aging demographic. But some of the resultant unintended consequences highlighted in part by the British Steel Pension Scheme fiasco demonstrate just how quickly public trust and sector reputation can be impacted.
“We want to play a greater role in protecting the interests of both the profession and the public. The taskforce has already started to develop a voluntary pension freedoms advice code, which will be made available to the public to provide greater transparency about what to expect from advisers.”
Webb added: “With so much negative coverage about financial advice, especially around pension transfers, it is great to see the industry taking a voluntary initiative to drive up standards.
“Most advisers want to do more than simply comply with the regulatory minimum requirements and value examples of best practice. This taskforce will help to meet that need.
“With PI insurers becoming increasingly nervous, anything to provide reassurance that advisers are dedicated to doing the best for the clients is very welcome and will help to facilitate high quality, impartial advice for those considering a transfer in the future.”
