The Financial Conduct Authority (FCA) has proposed introducing low-cost 'abridged advice' on potential pension transfers for customers where a pension transfer is likely to be unsuitable.
According to the regulator, abridged advice must be carried out or checked by a pension transfer specialist. It would take in the initial stages of the usual advice process, such as conducting a fact-find and risk assessment, including an assessment of the client's attitude to transfer risk. Based on that analysis, an adviser would then provide the consumer with a personal recommendation not to transfer or convert their pension if they can demonstrate those outcomes are unlikely to be suitable. The FCA said an adviser would not be able to provide a personal recommendation to transfer ...
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