Defined benefit transfers have come under unprecedented regulatory scrutiny this year in the wake of widespread suitability failings. Paul Squirrell assesses the FCA's tougher rules and their implications for advisers
Following last June's consultation (CP17/16), the FCA finally issued its policy statement Advising on Pension Transfers (PS18/6) in March this year. This much-anticipated report followed a review which found that only 47% of advice on DB to DC transfers could be shown to be suitable. What's more, the regulator deemed that only 35% of products and funds recommended for new pension schemes were suitable. As a result, many new rules relating to transfer advice came into effect on 1 April. I have detailed some of the key areas that advisers need to be aware of below. Giving advice an...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
