Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps her Department is taking to increase (a) transparency and (b) control for consumers in the defined contribution pension transfer process, in relation to the inability of Independent Financial Advisers or pension holders to execute transfers based on a specified date or value.

The Department is working with regulatory bodies, the pensions industry and other stakeholders to identify and explore potential changes to pension transfer processes that will enable greater efficiency, whilst providing savers with effective consumer protection.

In December 2024, the Financial Conduct Authority (FCA) published a discussion paper (DP24/3). The document sought views on how to ensure that consumers who ask to transfer or consolidate, do so on a well-informed basis. It also explores how pension providers can action these requests both diligently and efficiently.

The FCA is working closely with the Department for Work and Pensions as it analyses the feedback received and determines next steps.

Additionally, DWP officials have conducted work with other government departments, pensions institutions, consumer organisations and the pensions industry to consider if the practical application of the Conditions for Pension Transfer regulations could be improved, whilst retaining appropriate levels of protection for pension scheme members.

We will look to share the outcome of these areas of work as soon as it is practical to do so.