What does PAG 2 say ?
What Does PAG 2 Say?
If you're new to the term PAG 2, it refers to A Guide to the Treatment of Pensions on Divorce (Second Edition) — an invaluable resource designed to strengthen interprofessional working, establish a shared understanding of the law, and ultimately improve outcomes for individuals navigating pensions issues during divorce.
When it comes to understanding who qualifies as a PODE (Pensions on Divorce Expert), PAG 2 is the go-to reference. Appendix C of the guide sets out clearly that PODEs acting as a Single Joint Expert must bring high levels of technical knowledge and experience, alongside the ability to communicate complex information clearly to a wide range of readers.
PODEs come from a variety of professional backgrounds, including:
- Actuaries who are members of and regulated by the Institute and Faculty of Actuaries (IFoA)
- Actuaries who sit outside the IFoA's regulatory framework
- Independent Financial Advisers (IFAs) regulated by the Financial Conduct Authority (FCA) and approved by the Chartered Insurance Institute and/or the Chartered Institute for Securities & Investment
- Financial Planners and former Financial Advisers who are not FCA-regulated
- Members of the Academy of Experts or the Expert Witness Institute, both of which maintain their own codes of practice and complaints procedures
- Other practitioners who, while not fitting neatly into the above categories, can demonstrate the knowledge and expertise needed to carry out PODE work
It's worth noting that there is currently no formal professional qualification or regulatory system specifically for PODEs. That said, PAG 2 does offer thoughtful recommendations around regulation, indemnity insurance, standards, and competencies. It's also important to remember that not all PODEs produce expert reports for the courts — many provide other valuable support, such as acting as a shadow expert, serving as a Financial Neutral, or assisting with the implementation of Pension Sharing Orders.
Our PODEs
We're proud to have six PODEs at Southdown, each bringing a distinct professional background, breadth of experience, and range of affiliations. We genuinely believe this diversity is one of our greatest strengths — it allows us to draw on a rich mix of perspectives and apply our extensive combined knowledge when shaping the standards and processes that underpin every report we produce.
My background and also Ian's is rooted in financial planning, with us both having a particular focus on pensions on divorce related work. Both Scott and Steph have attained Chartered Actuary (Fellow) status with both coming from a pensions consultancy background. Since joining Southdown, Luke & Molly have gained the necessary knowledge and expertise to carry out PODE work.
Regulation, Indemnity, Standards & Competencies
PAG 2 makes clear recommendations in each of these areas, all of which we wholeheartedly endorse and have embedded into how we work:
Regulation: Every one of our PODEs holds membership with a recognised professional body — either the Institute and Faculty of Actuaries or the Chartered Insurance Institute — meaning we are all bound by formal rules of professional conduct.
Indemnity: We maintain Professional Indemnity Insurance specifically covering the nature of our work, with a limit of liability of £2 million.
Standards: We operate a 100% peer review process, ensuring that every report is reviewed by at least one other PODE before it is issued.
Competencies: All of our PODEs engage in ongoing, relevant Continuing Professional Development (CPD) to stay current with the latest developments in this specialist area.
Self Certification
We also endorse the recommendation in Appendix D of PAG2 that all PODEs are willing and consider themselves able to certify that they have the competencies relevant to each case they prepare a report for.
A Final Word
Before instructing a PODE, we would encourage those making that instruction to take a little time to gather enough information to feel confident that the firm and individual being instructed has the appropriate knowledge, is willing to self-certify, and can provide evidence — where needed — of professional body membership, indemnity cover, and the standards and processes they follow.
I hope this overview has been helpful in clarifying who can be instructed as a PODE. If anything here has prompted further questions, please don't hesitate to get in touch — I'd be very happy to help.