The Financial Conduct Authority (FCA) has pressed firms it has deemed have high defined benefit (DB) transfer conversation rates for additional information on their DB transfer advice process.
In a letter sent to one adviser at the end of October, who preferred not to be named, the regulator said their firm's transfer conversion rate, which was above 50%, suggested it may "not be acting in line with the guidance on the approach to DB transfer in advice." The FCA asked the adviser to identify and record the reasons for the high transfer rate and identify if there were any deficiencies in its approach to DB transfer advice. The conversation rate relates to the percentage of positive recommendations given to transfer away from a DB pension. In response to the letter, which ...
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