Progress highlighted in FCA review
The Financial Conduct Authority’s (FCAs) recent life insurer pension transfer review provides a welcome snapshot of progress across the pensions transfer landscape. It is encouraging to see firms demonstrating clear intent to deliver positive outcomes for consumers, with over 75% of ceding schemes completing transfers in around 20 days on average.
Digital platforms driving efficiency
The review rightly highlights the advantages of digital platforms. Transfers are demonstrably faster when both ceding and receiving schemes adopt digital processes rather than paper-based ones; and our Common Transfer Declarations sit right at the heart of that more modern approach. However, the FCA also recognises that speed should not come at the expense of consumer protection. A balanced approach, where necessary checks are applied to safeguard savers, is vital for good outcomes.
Addressing industry challenges
Despite progress, challenges remain. Firms face pressure from increased demand and the complexities of ensuring protective measures are consistently applied. Encouragingly, the report shows that many are taking proactive steps to refine their processes and strengthen their focus on long-term consumer interests, particularly in helping savers avoid the pitfalls of short-term incentives that may undermine future financial security.
Raising the bar beyond 20-days
While the review’s average 20-day transfer timeframe demonstrates clear improvement, it should be regarded as a stepping stone rather than the ultimate benchmark. The STAR initiative, set up by Criterion and TISA eXchange in 2019, sets a far higher standard, one designed to embed not only efficiency but also consistency, transparency and accountability across the transfer journey.
Collaboration and accreditation for best practice
Membership of STAR is open to all pension schemes, administrators and investment platforms, providing a collaborative framework for improvement. Through our annual accreditation scheme, we measure, recognise and champion good practice - highlighting firms who go beyond compliance to deliver genuine excellence in transfer performance.
Celebrating every step towards improvement
While achieving gold accreditation remains the ultimate goal for firms, the STAR initiative recognises and applauds organisations that take the vital first step of submitting Management Information (MI) to the initiative. Doing so demonstrates a commitment to fixing transfers, improving transparency, and driving better outcomes for consumers – values that underpin the highest standards across the industry.
