In its response to the latest FCA consultation paper CP18/17 on DB transfers, Aegon has warned the FCA that its draft guidance on triage places ‘considerable limitations’ on its likely effectiveness, and is also calling for a more “creative approach” to focus on what can, rather than what cannot be done within guidance.

The pension provider has called on the FCA to formalise a triage approach, stating that it would be “beneficial for both advisers and customers” to be able to ‘cut short’ the process. This, in turn, would save time and money, allowing the “limited” supply of advice to focus on customers more likely to benefit from transferring.

Aegon pensions director Steven Cameron said: “In medical terms, ‘triage’ involves a professional assessing an individual’s circumstances and determining next steps and their priority. But the triage being proposed for DB transfers excludes any professional assessment and is closer to self-diagnosis through google.

“We are calling for the FCA to explore what more advisers can offer within guidance to help customers reach an early decision. It’s positive that the FCA has set out a non-exhaustive list of considerations for advisers and we’d like to explore if this could be turned into a standardised traffic lights guide for consumers wondering if it’s worth their while seeking advice. This could be promoted by advisers, guidance bodies and trustees.”

The firm has proposed the introduction of a traffic light system guide to illustrate the concept, and is keen for wider debate on how this could be developed.

The traffic light system is a series of questions which will help savers decide whether or not they wish to seek advice on transferring from a define benefit or final salary scheme.

For example, the questions will have green, red or yellow answers, and if your answers contain a number of greens, then “as a rule of thumb”, saver’s may benefit from transferring and should explore the idea further. However, Aegon has said that this does not suggest actually transferring.

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