Pension Switch Template

Modified on Sun, 15 Nov 2020 at 08:46 PM

ATEB Template

Start with the ATEB template named ‘Pension Switch Template’. You will find this in the ‘Sample Templates’ tab on the ‘Templates’ page. The template has been pre-populated with basic information that is not client specific (see table below).

Firm Specific Template

Create your own version of the template using the ‘Duplicate Template’ button. Give it a meaningful name. Modify the template to make it firm specific, for example by adding company and/or adviser details. Consider the comments in the table below under the column ‘to be considered’ when modifying or creating templates based on the ATEB version.

Test Template

You may not get the template right first time; therefore, once the template is created, use it to generate a client specific test report. Based on the generated report, you may need to amend the template further. Repeat this testing process until you have a template which enables full client specific personalisation but contains common standard content. The time spent here will save hours going forward.

Important Notes

This template is for recommendations pertaining to switching from a personal pension to a personal pension; it is NOT designed to be used for Occupational Pension Transfer recommendations.
Care should be taken when preparing this template due to the regulatory risk associated with this type of transaction.
Prior to use, your template should be checked by your compliance department or compliance consultant.
This template is provided only as a guide. ATEB IT Solutions Ltd does not accept legal or regulatory responsibility for the contents of the template.

ATEB suitability Section	ATEB template defaults	To be considered
Getting Started
Report Details	Defaulted to individual (single) client
	Report Title: Recommendation to Switch your Personal Pension
	Advice Area: ‘Retirement Advice’
	Covering Letter: defaulted to ‘No’	Amend as required
	Remainder of section blank to allow for case-by-case personalisation	Consider whether more fields can be added to the template
Introduction to Advice	Sections included: Background to our Meeting Agreed Objectives and Priorities Attitude to Investment Risk	You may want to include further sections as standard, for example ‘Summary of Advice’ or ‘Current Personal and Financial Circumstances’.
Background to Our Meeting	Bespoke ‘Other’ default text used under ‘Who contacted who’	Amend this entry as necessary
	Assumed client is not elderly or vulnerable
	Assumed that disclosure documentation will be included with the report or has previously been issued	Do not pre-populate and enter on a case by case basis
	No disclosure documentation pre-ticked	As above
Agreed objectives and priorities	Comprehensive (full) review assumed and that no limits were placed on the scope of advice	Amend as necessary
	Objective used: ‘Review your current pension arrangements - You would like to review your existing pension plans to determine whether your pension arrangements remain suitable and on track to meet your retirement objectives.’	Amend as necessary
Attitude to Investment Risk	Default introduction to risk paragraph pre-selected	Consider whether to use an in-house standard paragraph
	ATR category blank to allow for case-by-case personalisation
	Assumed no change in client ATR from previous rating
	Default introduction to capacity for loss pre-selected plus additional text for pension switch advice	Consider whether to use an in-house standard paragraph
Retirement Advice
Foreword to Advice	Pre-populated with suggested text	Amend this text; or delete to allow for case-by-case personalisation
Recommended Plans
Plan 1	This is the existing pension from where the benefits are being switched.
Plan Builder	Set to Existing Defined Contribution Plan or Annuity
	Product: Personal Pension
Plan Details	Review outcome is to ‘Switch this pension to another provider.’	Amend as necessary
	Actions applicable to this plan set to ‘Pension Switch’ as default.
Recommendation Reasons	This section left blank to allow for case-by-case personalisation Please note - reasons outlined should be relevant to the suitability of the action taken (i.e. advice to switch only) not the new plan recommended	Consider if further standardisation required for the template
Potential Disadvantages	Blank to allow for case-by-case personalisation Please note - disadvantages outlined should be relevant to the suitability of the action taken (i.e. advice to switch only) not the new plan recommended	Consider if further standardisation required for the template
Situation on death	Assumes current death benefit options have been discussed with client. Nominated beneficiary set to ‘No’	Amend as necessary on a case-by-case basis
Personal Pension Switch Comparison	Default options used.	Amend as necessary
Discounted Alternatives	Blank	To be complete on a case-by-case basis
Further Considerations	Blank	To be complete on a case-by-case basis
Plan 2	This is the new plan into which benefits are being transferred
Plan Builder	Set to New plan
	Provider: Blank
	Product: Personal Pension
	Remaining fields blank	Consider if further sections are required for the template
Plan Details	Action applicable to this plan set to ‘lump sum contribution’ (transferred funds) and ‘source of contributions’ (Personal Pension) as default. Remaining fields left blank to allow for case-by-case personalisation	Amend as necessary
	Policy Cancellation blank	Consider if default entry to be used for template; or to be completed on a case-by-case basis
Plan Features	Default options used	Amend as necessary
Situation on Death	Default options used	Amend as necessary
Recommendation Reasons	This section left blank to allow for case-by-case personalisation	Consider if further standardisation required for the template
Potential Disadvantages	Blank	Add in all specific potential disadvantages required for the template
Discounted Alternatives	Blank	Consider if any options can be added as standard to the template
Further Considerations	Blank	Consider if any options can be added as standard to the template
Retirement Plan Charges	Default to question; ‘Do you wish to include a breakdown of charges? set to ‘Yes’
	Product selected: x 1 existing Personal Pension & x 1 new Personal Pension
	Assumes further information about advice charges included within Cost of our Services section
Investment Strategy Recommendation	Assumes Investment Strategy Recommendation relevant to New Personal Pension plan only
	Preferred investment approach set to default option	Amend as necessary
	‘Include Fund Performance’ defaulted to ‘No’	Amend as necessary
	Remaining section left blank to allow for case-by-case personalisation	Consider if further standardisation required for the template
Planning Ahead	Sections included: Wills Power of Attorney	You may want to include further sections as standard.
Wills	Blank	Consider if any options can be added as standard to the template
Power of Attorney	Blank	Consider if any options can be added as standard to the template
Important Information	Sections included: Cost of Our Services Regular Reviews Changes in Your Circumstances Emergency Funds What Happens Next Client Declaration	You may want to include further sections as standard
Cost of Our Services	Blank	Set any default charges applicable across the firm
Regular Reviews	Default entries used
	It is assumed that a regular review service will be implemented (or is in place)	If this is not the case, de-select this in the Report Builder section of the template (see above)
Changes to Your Circumstances	Default text selected	Consider whether this meets your needs or whether amended text or a suitable standard paragraph is required
Emergency Funds	Blank	Amend as necessary
What Happens Next	Blank	Amend as necessary
Client Declaration	Some default options selected, otherwise blank	Complete all other declaration options required for the template
	ATEB suggests that given the nature of the transaction, defined benefit transfer reports should include this declaration
Appendices	Assumes ATEB Glossary of Terms to be included within the report.
	Consider whether any customised appendices should be included as standard.
Glossary	Default options selected	Amend as necessary
Risk Warnings	Default options selected	Amend as necessary