Why 'polluter pays' could be final straw for DB transfer advice

Are the reforms the straw the broke the camel's back?

clock • 3 min read

The regulator's 'polluter pay' reforms mean the industry now appears to be at a tipping point when it comes to DB transfer advice, writes Brian Nimmo

The intentions behind the Financial Conduct Authority's (FCA) 'polluter pays' are admirable. They seek to drive up the standard of financial advice and ensure advisers are held financially accountable for poor advice when they let down their customers. In amidst the Consumer Duty reforms, it adds a further layer of regulation designed to protect the customer and ratchet up the pressure on advice firms to deliver high-quality services. The essence of the reforms is to make firms liable for any negative consumer outcomes as a result of poor advice, in turn, incentivising better pract...

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