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Pensions & Retirement

Pensions & Retirement
FCA Authorisation

Specialist regulatory support for pension providers, SIPP operators, retirement planning advisers, and firms advising on pension transfers and consolidation.

45+
Firms Authorised
98%
Success Rate
12 wks
Avg Timeline

Pensions Regulatory Landscape

The pensions and retirement sector encompasses advice on pension contributions, retirement planning, pension transfers, SIPP operations, and annuity selection. Given the critical importance of retirement outcomes, this is one of the most heavily regulated areas of financial services.

FCA regulation of pensions has intensified following high-profile pension transfer scandals, with particularly strict requirements around defined benefit to defined contribution transfers under COBS 19. The Pension Transfer Gold Standard and Consumer Duty have further elevated expectations for customer outcomes.

Successfully navigating authorisation requires demonstrating deep pension technical knowledge, robust advice processes, comprehensive safeguards for vulnerable customers approaching retirement, and evidence-based suitability frameworks that genuinely prioritize client best interests.

Typical Services

  • Pension transfer advice (DB to DC)
  • Operating a SIPP (Self-Invested Personal Pension)
  • Retirement planning and income drawdown advice
  • Annuity and lifetime income selection
  • Pension consolidation and scheme comparison
  • Workplace pension scheme advice

Required FCA Permissions

Pension firms require specific permissions based on their advice and operational activities.

Advising on Pensions Transfers

Advising clients on transferring pension benefits, particularly defined benefit to defined contribution transfers.

Key Requirements
  • Pension Transfer Specialist
  • COBS 19 compliance
  • Transfer Value Analysis
  • Appropriate Pension Transfer Analysis (APTA)

Operating a SIPP

Operating a Self-Invested Personal Pension allowing members greater control over investment choices.

Key Requirements
  • CASS compliance
  • Pension scheme rules
  • Investment due diligence
  • Member communication

Advising on Investments (Pensions)

Providing investment advice to pension scheme members on their pension investment strategy and asset allocation.

Key Requirements
  • Qualified advisers
  • Suitability assessments
  • Retirement risk profiling
  • Drawdown modeling

Establishing, Operating or Winding Up a Personal Pension Scheme

Setting up, operating, or winding up personal pension schemes including stakeholder pensions.

Key Requirements
  • Pension scheme documentation
  • Trustee arrangements
  • Member protections
  • Regulatory approvals

Safeguarding and Administration (Pensions)

Holding and administering pension assets and contributions on behalf of scheme members.

Key Requirements
  • CASS compliance
  • Client money segregation
  • Asset reconciliations
  • CASS oversight function

Advising on Pension Income Options

Advising on retirement income options including annuities, drawdown, and uncrystallised funds pension lump sums.

Key Requirements
  • Retirement options analysis
  • Annuity comparisons
  • Drawdown sustainability
  • Tax implications advice

Key Regulatory Requirements

Pension firms must demonstrate compliance with COBS 19, pension transfer rules, and Consumer Duty.

Pension Transfer Rules (COBS 19)

Appropriate Pension Transfer Analysis (APTA) for all transfers
Transfer Value Comparator (TVC) and critical yield calculations
Starting assumption that transfer is not in client's best interests
Clear disclosure of costs, charges, and loss of guarantees
Assessment of alternative options including staying in DB scheme
Pension Transfer Specialist qualification requirement
Detailed suitability report explaining transfer recommendation
Ongoing suitability assessments post-transfer

Pension Transfer Specialist Requirements

Appropriate qualifications (e.g., Pension Transfer Gold Standard)
Demonstrated experience in pension transfer advice
Ongoing competence and continuous professional development
Understanding of defined benefit scheme features and protections
Knowledge of retirement income options and drawdown sustainability
Ability to assess lifetime cash flow and mortality risk
Regular supervision and file reviews by competent supervisors

SIPP Operational Requirements

CASS compliance for pension assets and contributions
Due diligence on non-standard investments (property, unquoted shares)
Clear member communications on investment risks and charges
Pension scheme rules and constitutional documentation
Annual statements and retirement option communications
Appropriate default investment strategies
Member data protection and information security
Wind-down planning and business continuity arrangements

Consumer Duty for Pensions

Good retirement outcomes for customers throughout relationship
Products and services designed to meet customer needs at retirement
Fair value assessment including charges and investment performance
Clear communications about pension options and retirement risks
Appropriate support for customers approaching retirement decisions
Avoiding foreseeable harm from poor retirement outcomes
Monitoring and testing customer outcomes against expectations

Vulnerable Customer Protections

Identification of vulnerable characteristics (health, life expectancy)
Enhanced support for customers with reduced capacity for loss
Clear explanations for those with lower financial capability
Flexibility in retirement planning for those with health issues
Signposting to Pension Wise and MoneyHelper services
Extra care for customers under time pressure or experiencing life events
Staff training on vulnerability, mental capacity, and cognitive decline

Financial Resources and Capital

Base capital: £20,000 for pension advice firms
Base capital: £50,000 for SIPP operators
Professional Indemnity Insurance: minimum £1.6m per claim
Higher PII limits for firms advising on pension transfers
Own funds calculation and ongoing monitoring
Financial projections demonstrating sustainability
Wind-down costs and orderly cessation planning

Common Authorisation Challenges

Issues we frequently help pension firms navigate during the FCA application process.

Pension Transfer Specialist Qualification

Demonstrating appropriate pension transfer qualifications and experience is critical. We help identify suitably qualified advisers, evidence relevant experience, and structure supervision arrangements that satisfy FCA expectations.

APTA and Suitability Framework

Building comprehensive Appropriate Pension Transfer Analysis frameworks aligned with COBS 19. We provide APTA templates, transfer value comparator tools, and suitability report structures that meet regulatory standards.

SIPP Non-Standard Assets

For SIPP operators, demonstrating robust due diligence on non-standard investments like property and unquoted shares. We create due diligence frameworks, risk assessment methodologies, and member disclosure protocols.

Consumer Duty Outcomes

Evidencing good retirement outcomes under Consumer Duty is challenging. We help design outcome metrics, implement monitoring frameworks, and demonstrate how products and services deliver fair value throughout retirement.

Professional Indemnity Insurance

Securing adequate PII for pension transfer advice can be difficult and expensive. We connect firms with specialist brokers, help structure risk management to improve insurability, and evidence robust risk controls.

Vulnerable Customer Framework

Implementing effective vulnerable customer identification and support for those approaching retirement. We develop comprehensive frameworks covering capacity for loss, financial capability, and health considerations.

How We Support Pension Firms

Pre-Application

  • Business model scoping and permissions mapping
  • Pension Transfer Specialist identification and recruitment
  • APTA framework and tools implementation
  • SIPP structure and non-standard asset policy design
  • Professional Indemnity Insurance procurement support
  • Capital planning and financial resources assessment

Application Preparation

  • Complete Connect application submission
  • COBS 19 compliance manual and pension transfer procedures
  • SIPP operational procedures and CASS compliance (if applicable)
  • Suitability and advice process documentation
  • Vulnerable customer framework for retirement decisions
  • Consumer Duty implementation and outcome metrics

Post-Submission

  • FCA query management and technical responses
  • Senior Manager and Pension Transfer Specialist interviews
  • Additional documentation and evidence requests
  • Conditional approval requirements fulfillment
  • Post-authorisation compliance monitoring
  • Ongoing pension regulatory advisory and updates

Ready to Get Authorised?

Speak with our pensions regulatory specialists to discuss your FCA authorisation for pension services.