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FCA targets nine providers with DB transfer review letter

The FCA has confirmed to Money Marketing it has written to the heads of nine major product providers reminding  them to review their defined benefit transfer procedures.

In a Dear CEO Letter sent on 22 March, the FCA lays out how providers should treat customers fairly in the context of DB to defined contribution transfers.

It went on to say what product providers need to consider when designing, marketing and providing pension products.

When asked to give further detail about the firms the FCA says it cannot give more information as to how the criteria was set for writing to the companies.

Money Marketing has been told by three providers they have received the letter including Aegon, Aviva and Scottish Widows.

It also understands the watchdog has been targeted in who it has written to and focused on life companies rather than platforms with pension products or Sipp providers.

Meanwhile AJ Bell, JLT Group, Curtis Banks and Nucleus have not received the letter.

So far two Sipp providers, Intelligent Money and DP Pensions have pulled out of the DB market due to concerns about being held responsible for the suitability of advice.

Intelligent Money chief executive Julian Penniston-Hill has confirmed it has not received the letter.

The letter from the FCA has inspired a number of conflicting interpretations with the regulator later clarifying providers are not responsible for advice.

The watchdog has also clarified to Money Marketing the letter is applicable to providers who have not received it and adds: “What we expect from providers and how they should identify the drivers [when assessing whether a transfer is harmful to consumers] is set out in the letter under what they need to consider when designing, marketing and providing pension products.”


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FCA to grant firms PI flexibility after FOS limit increase

The FCA will consider the individual circumstances for advice firms who cannot get their personal indemnity insurance re-confirmed before the 1 April increase in the maximum compensation limit for Financial Ombudsman Service claims, Money Marketing has been told. Monday will see an increase in the FOS’s limit from £150,000 to £350,000. Confirmation of the changes […]


FCA clarifies providers not responsible for suitability on DB transfers

The watchdog has confirmed pension providers are not responsible for the suitability of advice on defined benefit transfers Money Marketing can confirm. A letter the watchdog sent to product providers last week about their DB transfer procedures inspired a number of conflicting interpretations. In a Dear CEO letter sent to the heads of major providers, the FCA […]


FCA tells providers to review DB transfer procedures

The FCA says product providers must be able to show they have taken the needs of customers into account that have transferred out of defined benefit schemes. In a Dear CEO Letter sent to the heads of major providers, the regulator lays out how providers should treat customers fairly in the context of DB to […]

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Company sick pay – new findings

Research by insurer LV= suggests that some 11 million employees in the UK have no company-paid sick leave entitlement. So if an employee from within the above grouping cannot work through illness or injury for any period of time, their only income would likely be that provided by state benefits alone.


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