Changes to the Buying Power algorithm as of 01/05/2024

Dear Client,

We have developed an important update to our Buying Power algorithm that we plan to release on the evening of Wednesday 1 May 2024. This change will see additional drawdown instructions included in the Buying Power calculations and remove the need for the ring-fenced cash workaround that some advisers are currently using for some payment types.

In addition to reserving cash for regular Pension Commencement Lump Sum (PCLS) and regular income payments, we will now reserve in buying power:

• Cash for Uncrystallised Fund Pension Lump Sum (UFPLS) single payment types
• Cash for single income payments
• Cash for Pension Commencement Lump Sum (PCLS) single payment types

There may be activity required on your part to help support this change.  In scenarios where there are accounts that have both existing ring-fenced cash and these types of instructions in place, we will share the details and ask that you review and adjust the ring fence by a specified date/time.  This is to ensure that there will be no duplication of protected cash values once the next Buying Power is generated.

I’m sure you’ll agree that this is a welcomed enhancement as it will improve the existing process and reduce any potential risk from manual workarounds.  

There is nothing for you to do now – please continue with your current processes. Your Account Manager will be in touch nearer the release date to provide further instruction and will share the list of any impacted accounts on the morning of the release.

Kind regards,

SS&C Hubwise Customer Services