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 ...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
 Be the first to hear about our events and awards programmes.



Already a Professional Adviser member?


More on Regulation

Advice firm Holborn Assets under FSCS investigation

Advice firm Holborn Assets under FSCS investigation

Advisory firm went into administration in October this year

Jenna Brown
clock 06 December 2023 • 1 min read
FOS to cut case fee costs and levy bill by £60m next year

FOS to cut case fee costs and levy bill by £60m next year

Latest plan and budget published by financial complaints body

Jenna Brown
clock 06 December 2023 • 3 min read
Chris Davies is founder and director at Model Office

'Targeted, intrusive and assertive': The FCA's new pro-active approach

Latest Dear CEO letter from regulator speaks volumes

Chris Davies
clock 04 December 2023 • 4 min read