In April, Money Marketing flagged up concerns that some IFAs were rebating commission to employers at the expense of scheme members who face higher charges.
Some advisers are thought to have been recommending employers to transfer pension funds into new schemes, earning the maximum commission and rebating as much as £500,000 of commission to the employer.
FSA head of investment policy Peter Smith says: “Where there is some sort of collusion between the employer and the adviser and people are taking action for their own financial interest rather than for the interests of the employees who should be the beneficiaries of these schemes, then that is something we are definitely concerned about.
“In May, we published a paper on the competence and ethics of advisers and this scenario does not fit with the sort of model we have in mind.”
Standard Life head of pensions policy John Lawson says: “The FSA seems to be taking a tougher line on this, which is good. Charging members excessively to pay backhanders is completely unacceptable.”