Aviva UK life chief executive Andy Briggs has put his weight behind calls for a ban on contingent charging for defined benefit pension transfer advice.
According to the Financial Times, Briggs says contingent charging could lead to poor outcomes for savers.
The FT reports Briggs saying: “I personally would say in [DB to DC] transfers, whatever the fee is, you have to pay, even if the decision is not to transfer.”
He says: “This will be a powerful way of making sure that only those clients that are genuinely interested [in the advice] engage with the process, and that would be an extra guard against any potential rogue advisers in this space.”
In a March consultation paper, the FCA raised questions around charges for DB transfers, including whether contingent charging should be banned.
The work and pensions select committee also called for a ban on contingent charging in its report looking into how financial regulators handled the British Steel Pension Scheme saga.