About 70% of clients who employed advisers with a contingent charging model chose to transfer their defined benefit (DB) pension, more than double the rate of those who chose the opposite structure, Lane Clark & Peacock (LCP) found.
A Freedom of Information (FOI) request to the Financial Conduct Authority (FCA) by the pensions consultant found 68.25% of contingent charge clients chose to make the transfer, compared to 27.97% in the opposite group. LCP said this showed the clear "bias" in the framework, and questioned why the FCA only implemented the ban on the model last year. Under a contingent charging agreement, advisers are only paid if a client goes through with the transfer. The figures are based on 1,014 advice firms offering contingent or non-contingent advice but excludes 335 hybrid businesses. LCP p...
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