The overwhelming majority of advisers support the FCA’s new requirement to provide a suitability report even if they recommend a client not to transfer out of a defined benefit scheme.
In a paper last week setting out new rules for advising on transfers, the FCA said firms will now have to provide a suitability report to clients regardless of whether their advice is to remain in a scheme or transfer.
The rule is effective immediately.
A poll on the Money Marketing website asked respondents if advisers should have to provide a suitability report for negative recomendations.
Seventy one per cent voted yes in response to the question and 25 per cent voted against it.
Four per cent or six voters said they were unsure. The poll recieved more than 150 responses in total.
A number of providers also backed the new rule when it was announced.
Aegon pensions director Steven Cameron says: “It makes sense for customers to receive a suitability report whether or not the advice is to transfer. We’d welcome further guidance from the FCA on how detailed a ‘don’t transfer’ report needs to be and in particular if it needs to cover all the areas which would be considered before making a positive recommendation to transfer.”