Advisers are continuing to leave the defined benefit (DB) transfer market in droves, with high professional indemnity (PI) premiums prompting more than 30 firms to back away from final salary transfer advice in just three months.
The Personal Finance Society (PFS) found more than 30 advice firms turned their backs on offering pensions transfer advice from October to December 2019 due to problems obtaining PI cover. Since the Financial Conduct Authority (FCA) lifted the Financial Ombudsman Service (FOS) compensation limit from £150,000 to £350,000 in April last year, advisers have struggled to afford PI insurance. This led to criticism from the PFS, who warned the regulator these hikes would deter advisers from giving pension transfer advice. Additionally, some insurers have pulled out of covering firms for DB ...
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