Ban contingent charging, urges Work and Pensions Select Committee

'Inherent conflict of interest'

Hannah Godfrey
clock • 3 min read

The Work and Pensions Select Committee has urged the FCA to ban the use of contingent charging in financial advice in its latest report into the British Steel Pension Scheme (BSPS).

The committee has put together a 39-page report, detailing and summarising the various pieces of information and evidence it has collected on the British Steel saga over the past couple of months. The report claims contingent charging is "a key driver of poor advice", adding: "Genuine independence is not compatible with a charging model that only rewards advisers for recommending a particular course of action." According to the committee, contingent charging gives rise to an "inherent conflict of interest" and the guidance and monitoring of it by the Financial Conduct Authority (FCA) ...

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