In the case of married beneficiaries, for example, this involves verifying that the signature of the spouse or registered partner on the withdrawal application is officially authenticated. Since the sums involved are generally significant, this procedure is not disproportionate when savings are removed from the pension circuit and transferred to private assets. For Liberty Pensions, this practice is an appropriate tool for implementing the diligence requirements and is systematically applied.
Liberty Foundation also has to satisfy strict diligence requirements in respect of unmarried account holders or beneficiaries who are legally divorced. This is done by a thorough examination of these indications. Applicants are thus required to provide official proof ensuring and certifying that the spouse’s signature has not been “unintentionally” omitted.
Lax implementation of the strict compliance requirements involves a major risk for Liberty Foundation which might be required to pay the lump-sum benefit a second time and obtain repayment from the wrongful beneficiary.
The applicant can actively contribute to reducing this risk by providing the Foundation with the complete requisite documentation.