Appropriate independent advice meaning

Original news Mr Y (CAS-57893-P0C6)—20 August 2025 / Ms R (CAS-58612-P1X1)—18 July 2025 Summary The Pensions Ombudsman dismissed a complaint concerning a loan note investment. The scheme’s independent trustee bore no responsibility for losses arising from this high-risk, speculative asset. The complainants had completed forms confirming the trustee was not giving investment advice and could not be held accountable for any investment loss. The arrangement ran on an execution-only basis. The trustee also undertook appropriate due diligence before proceeding. In light of these factors, no liability ultimately attached to the trustee for the loan note loss. The determination highlights the perils of placing funds into non-standard investments. Accordingly, the complaint failed. What were the facts? Ms R and Mr Y were members of the Westerby Pension Scheme (the Scheme). The Scheme was a self-directed, self-invested personal pension (SIPP) scheme. Westerby Trustee Services Limited (Westerby) was the Scheme’s independent trustee and administrator...

In this issue: Key DR developments Claims and remedies Cross-border disputes Litigation Evidence and disclosure Scottish civil litigation New content Dates for your diary Useful information Daily and weekly news alerts Key DR developments Announcements The UK Supreme Court has confirmed that His Majesty King Charles III has approved the appointment of Lord Sales as Deputy President of the Supreme Court. Acting on advice from the Prime Minister, Sir Keir Starmer, and the Lord Chancellor, David Lammy, and following the recommendation of an independent selection commission, Lord Sales will succeed Lord Hodge, who retires at the end of December 2025, taking up the position in January 2026. For further detail, see: LNB News 24/10/2025 9—UK Supreme Court announces appointment of Lord Sales as Deputy President. The UK Supreme Court has also announced that Lord Richards will retire from both the Supreme Court and the Judicial Committee of the Privy Council in June...

This Practice Note outlines and critiques the restrictions that arise when advice is provided to an individual who wishes to move from a defined benefit (DB) occupational pension scheme to a manner of defined contribution (DC) arrangement. It concentrates on what amounts to suitable independent advice, identifies which persons are authorised to deliver advice, and explains the Financial Conduct Authority (FCA) requirements placed upon those persons. The need to take advice Since 6 April 2015, members holding safeguarded benefits—broadly, DB entitlements—valued at £30,000 or more must obtain advice from a professional, independent financial adviser (described by the FCA as a Pension Transfer Specialist) if they intend to surrender safeguarded benefits in favour of flexible benefits—broadly, DC entitlements—whether by transferring them to a flexible benefit scheme, converting benefits into flexible benefits, or receiving them as an uncrystallised funds pension lump sum. This duty to seek advice, which this Practice Note terms the ‘appropriate independent advice requirement’, is considered in Practice Note: Requirement for appropriate independent advice on DB to...

A pension transfer A pension transfer takes place when an individual’s rights under one pension scheme are moved to another. The ceding scheme passes the relevant assets to the receiving scheme, which then assumes responsibility for providing the benefits for the person concerned. Members of all UK registered pension schemes that are personal pension schemes have an overriding statutory entitlement to transfer the cash equivalent of their benefits to another pension arrangement, subject to meeting certain prescribed conditions. Many personal pension schemes also allow transfers out in wider situations than those giving rise to the statutory right, for example: partial transfers transfers of benefits that are in drawdown transfers of particular assets in non-cash form In practice, it is crucial that transfers paid from personal pension schemes constitute a recognised transfer for HMRC purposes and do not inadvertently forfeit any tax-related protections or statuses the member may hold. Personal pension schemes can also receive transfers from other pension...

In this Practice Note, the expressions ‘defined benefit’ or ‘DB benefits’ denote safeguarded benefits for the purposes of section 48 of the Pension Schemes Act 2015 (PSA 2015). Likewise, ‘defined contribution benefit’ or ‘DC benefit’ is used for flexible benefits under PSA 2015, s 74. For further detail on safeguarded and flexible benefits, see Practice Note: Flexible benefits vs safeguarded benefits. Relevant trustee considerations When handling DB to DC transfer requests (or DB to DC conversion requests), trustees of DB occupational pension schemes should take account of the following: Compliance with the cash equivalent transfer value regime Trustees must adhere to the statutory rules of the cash equivalent transfer value (CETV) regime. Those requirements are found in: sections 93–101 of the Pension Schemes Act 1993 (PSA 1993), which set out the eligibility conditions and the steps to follow the Occupational Pension Schemes (Transfer Values) Regulations 1996, SI 1996/1847 (the Transfer Regulations), which prescribe how a member’s cash equivalent is to be calculated...

Important—this provisional allotment letter (pal) is of value and is negotiable. Your prompt attention is required. This invitation lapses at [ insert time ] on [ insert date ]. The full pal must be produced at the time of payment. Should you be uncertain about any part of this pal, or unsure what steps to take, you should seek your own financial advice without delay from your stockbroker, bank manager, solicitor, accountant, or another suitably qualified independent financial adviser duly authorised under the Financial Services and Markets Act 2000 (fsma), or, if you are located outside the United Kingdom, from an appropriate qualified independent financial adviser duly authorised within your jurisdiction. If you dispose of, transfer, or have already disposed of or otherwise transferred all of your ordinary shares (other than ex-rights) held in certificated form before [ Insert time ] on [ Insert date ], please send this pal together with form x (form of renunciation) on page [ Insert page number ], completed immediately, to the buyer...

This COMPROMISE Agreement (Agreement) is entered into on [ insert date ] between: 1 [ Employer Name ], with its registered address at [ address ] (the Company); and 2 [ Employee Name ], of [ address ] (the Employee). WHEREAS: The Employee has worked for the Company since [ date ] under a contract of employment dated [ date ]. Provide a concise basis for the termination of employment, for example, ‘by mutual agreement’ or ‘due to redundancy’. This clause should be revised if the termination date has already passed. The parties agree that the Employee’s employment will end by [ mutual agreement OR redundancy ] on [ date ] (the Termination Date). Where any claims or proceedings have been lodged, they must be clearly described by their record number and included within the definition of ‘Claim’ or ‘Proceedings’ as appropriate. The Employee has filed a complaint with the Workplace Relations Commission under the [ insert Act(s) ] (bearing reference number:...