FCA eyes contingent charging ban in DB transfer advice

In its consultation paper on ‘Improving the quality of pension transfer advice', the FCA said: "Given the potential harm to consumers, we are considering if it is necessary to intervene in the way charges are levied for pension transfer advice. This could mean a ban on contingent charging." The regulator said respondents to its June consultation on transfer advice highlighted conflicts of interest in the contingent charging model, whereby an adviser is only paid by a consumer if a transfer takes place. "Some firms that advise exclusively on pension transfers have the purest form of co...