Test question 5th October 18

Test question from Financial Exam in Bat

As of 1st October 2018, its’ good bye’ to TVAS reports. What is the replacement process the FCA expects firms to undertake in pension transfers?



2. TVC





























Answer = 1.  ‘APTA’, the Appropriate Pension Transfer Analysis. This includes a Transfer value comparator (TVC) which includes the benefits being given up and the cost of purchasing the same income in the DC environment. Also, the process requires an assessment of the client’s outgoings and potential income needs throughout retirement, how both the ceding scheme and receiving scheme meets those needs, considering other means available. And consideration of death benefits on a fair basis, explaining the importance of the figures.