If your client has a TAP expiring this financial year, there may be some things you need to do before it ends, which we’ve outlined below.
What you need to do if your client’s TAP is ending
If your client’s holdings are invested, you’ll need to sell down their assets to the cash account to fund future pension payments.
Please note, if a sell-down hasn’t happened approximately three weeks before the account closure date, we may need to sell down your client’s holdings for you.
As part of the sell-down process, we may also need to remove you as an adviser from your client’s account. If we need to remove you from their account, you can contact us after the account is closed to reinstate your access.
How are pension payments calculated?
To ensure the account balance is fully paid to your client by the term end date, or in June of the following year, all pension payments will be calculated using the account balance on 1 July.
Any account balance movements due to investment performance and or fees may mean that your client’s final pension payment could be either more or less than the preceding one.