FCA DB transfer paper blows guidance option 'out of the water' - Hargreaves

New rules to mandate ‘personal recommendation’

Victoria McKeever
clock • 3 min read

The proposed 'personal recommendation' rule in the regulator's defined benefit (DB) transfer consultation paper "blows out of the water" any potential guidance option for clients looking to exit final salary schemes, according to Hargreaves Lansdown's Nathan Long.

The senior pensions analyst said the proposed Financial Conduct Authority (FCA) requirement for a ‘personal recommendation' before transferring out of a final salary pension scheme meant the adviser would have to consider personal circumstances and deliver personalised advice. "It reiterates that need for a personal recommendation which blows out of the water any hopes of DB schemes being able to be transferred via some sort of guidance service," said Long (pictured).  He explained: "As soon as you start taking that extra personal information into account and personalise your guidance...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Retirement

PA360: The 'human' element of retirement planning becoming ever more important

PA360: The 'human' element of retirement planning becoming ever more important

Retirement panel on client-centric approaches

Isabel Baxter
clock 02 May 2025 • 3 min read
'Urgent action' needed on Gen Z pension saving barriers: PPI report

'Urgent action' needed on Gen Z pension saving barriers: PPI report

Generation faces retirement challenges

Jasmine Urquhart
clock 26 February 2025 • 3 min read
Advisers concerned about regulatory scrutiny in decumulation phase

Advisers concerned about regulatory scrutiny in decumulation phase

Retirement planning ‘dominates’ client advice requests

Isabel Baxter
clock 27 November 2024 • 3 min read