The Financial Conduct Authority deemed fewer than half (47%) of the defined benefit (DB) transfers it reviewed - where the recommendation was to transfer - to be suitable, its latest report has shown.
The regulator reviewed 88 DB transfers after October 2015 and decided 47% were suitable, 17% were unsuitable and the remaining third (36%) were inconclusive. It also considered the suitability of the recommended product or fund the pension was transferred into and found a mere third (35%) were deemed suitable, while 24% were unsuitable. In about four in ten cases the FCA could not decide whether the product or fund was suitable or not. The FCA said: "Firms must make sure that their personal recommendations are suitable for their clients. However, many firms had designed processes and ...
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