Under the Welfare Reform and Pensions Act 1999 the following guidance in relation to the requirements of the financial services legislation has been given to the Society. There are three stages to be considered separately in this area.

The first stage is the gathering of information about the value of the assets including the pension. This stage is not of itself Investment Business and can be done by a solicitor. Valuation methods used should be in accordance with the pension regulations, such as the cash equivalent method. 

The second stage is the important decision whether to opt for earmarking, sharing or offsetting, pension entitlement. A practice unit may give generic advice on the general nature of these options provided a practice unit holds an Incidental Financial Business Licence from the Society.

Only those practice units which are licensed by the Financial Conduct Authority are permitted to give specific investment advice on each of these options a client should pursue with regard to Pension Sharing on Divorce.

It should be borne in mind in all cases that, even where pension sharing is not used, clients may require pensions and other investment advice in their changed marital and financial status.