Nervous advisers are recommending clients stick with their existing pension arrangements, even where there is good reason to transfer, because of the FSA's "heavy-handed" crackdown on pension switching.
A number of concerned IFAs say the regulator’s efforts to protect consumers from unsuitable pension switches have, in some cases, proved counter-productive. A thematic review by the FSA in 2008 found almost one in six pension switches had been missold. Follow-up work last year led to a £700,000 fine, plus an order to conduct a past business review, for RSM Tenon Financial Services, while ten other firms were asked to conduct legacy business assessments. But a number of IFAs have told Professional Adviser, IFAonline's print title, the FSA’s “heavy-handed” approach has left them worr...
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