FCA video tells consumers how to spot bad DB transfer advice

The regulator said the video would help those who have transferred out of their DB pension and are unclear whether they received good quality advice, including former members of the British Steel Pension Scheme.

It said the 17 minute video would also be of interest to those who may be considering transferring out and therefore wish to understand what the process should look like before they start. 

The FCA said the video highlighted "key information" customers should be provided with by their adviser, and also offered clients questions they should ask.

In the video, FCA senior associate for the communications division Mark Goold started by reiterating the message the regulator has previously told advisers - that it will generally not be in the client's best interest to leave a pension scheme that will provide them with a sustainable income when they retire.

Therefore, he said, the FCA expects advisers to carry out a detailed analysis of their client's personal circumstances before making any recommendation.

Source: The FCA

Goold said the FCA expected advisers to talk to clients about disclosure, a client's personal situation, carry out research and provide a suitability report and to then discuss ongoing services.

He then continued to explain each of these aspects and what an adviser should establish in each part of the advice process.

 Source: The FCA

Goold added: "All we would like you to do is consider if these steps were covered in detail with you. If that wasn't your experience, or if you're not sure if the advice you received was suitable, then you can contact the Financial Ombudsman Service."

The senior associate said the FCA was not suggesting viewers had received poor or unsuitable advice, but rather that it wanted them to think more about the advice process.

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• Topics
• Regulation
• FCA
• DB transfers
• Mark Goold
• Consumer advice