PFS warns of sector damage from 'active' DB transfers

'We're working with regulators'

Tom Ellis
clock • 1 min read

The Personal Finance Society (PFS) has warned advisers who transfer clients out of defined benefit (DB) schemes while they are still accruing benefits could cause "huge detriment" to the sector.

The body's director of policy and engagement Matthew Connell (pictured) told delegates at SIFA's annual conference the PFS had been comfortable with the difficulties surrounding transfers "up to now", but was concerned that transferring "active" members out of DB schemes could end up harming advisers' reputation as a whole.  Active membership was a "very different situation" to being a paid-up member, he said, as it comes with a host of added complications, not least to the transfer value equation. Connell said: "For us, even though it's a small development in the market it's very imp...

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