PensionBee comments on FCA’s plans to modernise and improve efficiency in the pension transfer system

PensionBee, a leading online retirement savings provider, has welcomed today’s consultation from the Financial Conduct Authority (FCA) setting out reforms to modernise the pension transfer process, highlighting a long-overdue turning point for an industry still held back by slow, paper-based practices.

The FCA’s plans to introduce transfer timelines and formal recognition of digital signatures to remove unnecessary friction, reduce harmful delays, and ensure consumers can move their pensions quickly and securely.

Lisa Picardo, Chief Business Officer UK at PensionBee, commented: “Today’s consultation from the FCA sets out a vital package of reforms that will finally level the playing field for pension transfers. For years, companies like PensionBee have been forced to request thousands of documents from ceding providers, often facing lengthy delays or no response at all, and have been pushing for change to better serve consumer interests. The FCA’s proposals to enforce a consistent 10 working day response time and to mandate the acceptance of digital signatures are long-overdue steps that help modernise the industry and ensure customers no longer suffer from outdated, paper-based processes.

“The industry has been plagued by excessively slow transfer times, inconsistent practices, and providers that routinely reject perfectly valid digital signatures. These reforms set a clear and enforceable expectation: consumers should be able to move their pensions efficiently, securely and without unnecessary friction. With mandated 10-day response times, ceding firms will need to build operational efficiency into their processes, reducing the pervasive delays that undermine consumer trust and cause harm. And with the widespread adoption of digital signatures, the dreaded ‘wet signature’ - a long-standing cause of transfer stagnation - finally looks set to become a thing of the past.

“However, to ensure this reform really delivers on its promise, it’s essential that TPR-regulated providers are brought into scope, given they account for approximately 30 million DC pension memberships and could otherwise be a major source of inconsistency and delay. For this to be a real success, we urge the DWP, FCA and the TPR to cooperate and apply reforms consistently across all schemes and providers, creating a harmonised system and relieving consumers of this pain point in their retirement savings journey once and for all.

“We’ve called for the DWP to move quickly on fixing the current Transfer Regulations, reforming the ‘Amber and Red Flag’ system designed to prevent scams, that’s in practice being persistently misused by some to delay transfers. It’s positive and welcome news that the DWP expects to consult on revisions in 2026, as this has the potential to clean up some of the industry’s ‘sludge’.

“A clear, simple 10-day Pension Switch Guarantee could set expectations for consumers and providers alike - we know many firms are already able to work to this timeframe consistency already, and that consumers are supportive based on our public petition which has already received many thousands of signatures. With all the relevant information gathered upfront in the FCA’s proposed process allowing ceding providers 10 working days to issue the requisite information, there would be no justification for further delays. Some consumers may even perceive this to be ‘inappropriately long’.

“Finally, mandatory MoneyHelper appointments should now become voluntary - with significantly more information being provided during the process itself, compulsory guidance appointments no longer serve the same purpose, although signposting should continue to be available for those who do wish to access this guidance. These reforms, taken together, have the potential to transform the transfer experience for savers across the UK, if adopted universally and enforced by all regulators. But time is of the essence if these reforms are to become effective ahead of the pensions dashboard which is likely to trigger further demand for pension consolidation as consumers start to tackle their fragmented pension pot problem.”

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