Contingent charging ban could 'severely' cut DB advice supply

Consultation closes on 30 October

Jenna Brown
clock • 2 min read

Tougher regulation of defined benefit (DB) advice could result in a "sharp shrinkage" in supply leaving consumers more vulnerable, Aegon has warned.

The provider made the comments in its response to the Financial Conduct Authority's (FCA) consultation Pension transfer advice: contingent charging and other proposed changes (CP19/25) which closes today (30 October). The FCA wants to ban contingent charging when dealing with DB transfer advice to stop "poor advice". However, Aegon pension director Steven Cameron said while the FCA had intensified concerns that contingent charging creates bias "but a cause and effect link to poor advice has not been proven". "We continue to believe an overall ban on contingent charging will reduce ...

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