Financial advisers are finding it difficult to secure the insurance they require to be able to offer pension transfer advice, according to the Personal Finance Society (PFS), and this risks derailing the pension freedom reforms.
The trade body has told the Financial Times insurance companies are withdrawing cover for financial advisers providing advice on retirement arrangements. Anyone looking to transfer a defined benefit (DB) pension worth more than £30,000 must obtain independent financial advice but PFS chief executive Keith Richards told the FT, professional indemnity insurers had begun to pull back from providing cover for advisers involved in pension transfer advice. "The pension freedoms are in great danger of being derailed if [professional indemnity] insurers continue to overreact and withdraw cove...
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