Pension providers will be expected to check adviser firms have the appropriate permissions to carry out defined benefit (DB) transfers and "act accordingly" if not, the FCA has warned.
In a ‘Dear CEO' letter, the Financial Conduct Authority (FCA) said it expected pension providers to check adviser permissions during DB transfer reviews and "act accordingly" if there had been changes or permissions had been completely removed. The letter was the result of a review into pension product providers that sought to identify the key drivers of harm with respect to DB to defined contribution (DC) transfers. The regulator wrote: "Providers largely use manual processes, usually retrospectively, to check whether advisers have the relevant permissions to advise on pension transf...
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