Hargreaves Lansdown suspends pension transfer advice

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Hargreaves Lansdown has had to stop taking on defined benefit transfers after hitting capacity following the introduction of pension freedoms.

The investment manager has had to turn away clients after being overwhelmed by a doubling in the number of people approaching it for advice on moving out of DB schemes, the Financial Times reports.

Head of pensions research Tom McPhail says: “We stopped accepting clients for pension transfer advice a couple of weeks ago because we are running at capacity.

“We would rather not take on any work in order to continue to process the work we have in good time.”

Hargreaves says it is likely the stoppage would be “days and weeks, rather than weeks and months”.

The FCA introduced tighter rules on pension transfers at the same time as the pension freedoms came into force in April.

Savers attempting to transfer out of pensions worth £30,000 or more and with safeguarded benefits, including defined benefit schemes and policies with embedded guarantees, must seek advice.

In some cases this must be undertaken by advisers holding specialist pension transfer qualifications.