Further, I implore the FCA to crack down on needless delays, forcing ceding companies to be more transparent with their processes, and punish those who cannot prove the delays were wholly necessary. Fining said companies would be a strong start. Providing a real disincentive to hold onto a client’s money will likely speed up the process for many providers. 

Finally, it is up to ceding companies to accept the issue with their existing processes and acknowledge where changes can be made to ensure that the client is always put first. In the past, many companies have been reticent to admit that some cases, even if they are in the minority, that they are negatively impacting people’s retirement finances. However, with enough pressure from regulatory bodies, as well as advisers, they may be more likely to concede and work to make improvements. 

Such dramatic changes will not happen overnight. These changes will take time, as will the rebuilding of trust between clients and the retirement sector. However, provided that advisers and regulatory bodies are willing to dedicate time and resources to changing practices and applying pressure on ceding providers to change their processes, I am hopeful that pension transfer delays will begin to whittle away. 

 Andrew Megson, executive chairman of My Pension Expert