View more on these topics

DB transfer rules leading to unnecessary caution among advisers

Warning-Sign-Yield-Slow-Stop-Danger-700x450.jpgAdvisers say that FCA rules could be leading to too much caution on defined benefit transfers.

While many are calling for greater clarity from the regulator, a new survey by Aegon shows that nearly three-quarters of advisers actually think the rules could be stopping some DB to defined contribution transfers that should go ahead.

37 per cent said the existing guidance is unclear, and 39 per cent think it is clear enough, but overall, the majority think the regulations as they stand are resulting in too much caution.

73 per cent say offering more DB transfers would be positive.

Aegon pensions director Steven Cameron says: “No two clients are the same, and transferring from a DB scheme and giving up a secure income for life is certainly not right for everyone. With an ever growing demand from clients looking at this option, advisers are keen to see how the FCA will update its guidance following their consultation. Clear, updated guidance will allow advisers to offer their services with confidence without feeling they have to be unnecessarily cautious.”

Recommended

Pension savings-2015
11

FCA pays PwC £75k for DB transfer redress report

The FCA has paid PwC at least £75,000 to review how clients who receive bad pension transfer advice should be compensated. The regulator set out its proposals in March for updating its methodology to calculate redress for customers who were given unsuitable advice to transfer out of a defined benefit pension scheme, after asking PwC […]

DB transfer suspensions: Where are they now?

After a raft of firms have been forced to suspend defined benefit transfer business, advisers are still little clearer over when services will resume. Demand for DB transfers is still running high, but finding enough support for the workload has become problematic with a number of firms either having permissions suspended or voluntarily agreeing to […]

5

Graham Bentley: Why advisers should worry about the FCA’s platform market study

Platform gurus have recently been opining on the FCA’s deluge of market studies; in particular questioning the point of the Investment Platforms Market Study. As Lang Cat consulting director Mike Barrett saw it: “You can’t help wondering whether the more detailed areas of focus are structured to prove (or disprove) a problem the FCA is […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. We have transfer permissions, but refuse to entertain any form of potential DB transfer advice. Our view is that at present the regulatory, financial and representational risk is still too great. The main issue is lack of confidence in the regulators and the FOS not to take a completely impartial stance on any complaints that my arise. There is also the major concern of PI Insurers refusing cover or future premiums or excesses being that large that cover is not affordable. There is also the longstop issue, but that is a discussion for another time. Until all these issues are clarified and resolved our stance will remain the same

Leave a comment