This article provides a step-by-step guide as to how you can quickly and easily write a defined benefit pension transfer report using the Genovo suitability report app.
1) Select or add the client
Go to write / view report and select or create the private client you wish to write the report to.
2) Add the required advice sections
Having given the report a name and selected the report type (i.e. suitability report), you’ll be directed to the Report Builder page where you can add the necessary advice sections, which in this instance are:
1. Cash Flow Modelling: DB Pension Transfer (can be used to fulfil the requirements of the APTA)
2. Review of Your Existing Pension Plans
2. New Pension Recommendation (if the client's still in the accumulation / pre-retirement phase) OR Drawing Benefits from Your Pension Fund (if the client's in the decumulation / at-retirement phase and wants to start drawing benefits via drawdown for example)
3. Investment Strategy Section - It's here you're going to confirm the client's ATR, CFL and the underlying investment strategy that you recommending the client invests into via the recommended new pension plan.
3) Complete all section wizards
Next you will need to step through the section wizards of all of the sections that require your input, starting with the Introduction Section.
4) Complete the Introduction Section
You will progress through the steps of the Introduction section in the usual way. When you reach the Client Objectives step you should select or add the advice option(s) that accurately reflect the client's objective(s).
As with any advice option you select in the Client Objectives step, you should add comprehensive Know Your Client (KYC) information to it to ensure you fulfil the regulator’s expectations of you in terms of documenting a client's objectives. You can read more about what the FCA have to say about this here.
5) Complete the Review of Your Existing Pension Plans Sections
Within this section you'll be prompted to provide details of the client's existing defined benefit pension(s) and confirm what action you are recommending. You can select from the following Recommended Actions:
Transfer - You are actively recommending that the client transfers to a money purchase pension plan, but no benefits are to be taken immediately.
Transfer and draw benefits from - You are actively recommending that the client transfers to a money purchase pension plan, and starts to draw benefits immediately (via drawdown for example).
Remain in the scheme but you insisted on transferring - For use with insistent clients who want to transfer their DB pension to a money purchase pension plan but no immediate tax free cash or income is required. *
Remain in the scheme but you insisted on transferring and then drawing benefits from - For use with insistent clients who want to transfer their DB pension to a money purchase pension plan so benefits can be taken immediately (via drawdown for example). *
* Selecting either recommended action will automatically insert the insistent client warning text in your report.
6) Complete the relevant recommendation section
It is within the recommendation section that you will be prompted to provide details of the new money purchase pension plan you are recommending. If benefits are to be taken immediately (e.g. via drawdown) you should complete the Drawing Benefits from Your Pension Fund section. If no immediate tax free cash or income is being taken and the pension fund is being left to accumulate (within a PPP or SIPP for example) then it's the New Pension Recommendation section.
7) Complete the Investment Strategy Section
Within this section you'll be prompted to confirm the client's attitude to risk, capacity to loss and to provide details of the fund(s), model portfolio or DFM that you are recommending the client invests into via the new money purchase pension plan that you've recommended in the previous recommendation section.
8) Complete the Important Information Section
This is the last section you'll need to complete and is self-explanatory.
9) Tailor the structure of the report
Having completed all of the section wizards you should then tailor the structure of your report by unchecking any optional sections you do not wish to include in your report.
Depending upon your personal preferences you may choose to omit the Executive Summary, Client Declaration, and / or Appendix – Attitude to Risk Profiles sections. You’ll find more information about how to remove optional sections from your report here.
10) Download the report
Click the download report icon and the report will download to Word. On opening the report you'll notice the report follows the typical Genovo format and structure. However, there will be a few bits within the Review of Existing Pension Plans and the Appendix - DB Pension Transfer Value Analysis and Appendix - DB Pension Transfer Value Comparator sections that will require a bit more input and editing from you. Simply follow the accompanying user instruction, make any necessary edits and that's it, you’re done.