Proposed contingent charging ban 'throwing the baby out with the bath water'

Pension transfer proposals

Sophie King
clock • 2 min read

The proposed ban on contingent charging on DB transfers is the "wrong solution to the problem", financial adviser Scott Gallacher has said.

Last month (30 July), the Financial Conduct Authority said it was consulting on plans to ban contingent charging on defined benefit (DB) transfer advice.  In consultation paper CP19/25, the FCA expressed concern that too many advisers were delivering poor advice and said much of it was driven by conflicts of interest in the way they are remunerated. Rowley Turton director Gallacher said he did not think the regulator understood the "true costs" of running a business. He said the FCA had "significantly underestimated" the hours a DB transfer takes to complete, as well as the hourly ...

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