Insistent client transfers accepted by 70% of providers

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The vast majority of pension firms will accept transfers from customers going against the recommendation of an adviser all or some of the time, FCA data reveals.

According to the regulator’s survey of 107 pension providers, published today, 61 per cent said they would accept transfers from insistent clients in certain circumstances, while 9 per cent said they always would.

This figure rises to 77 per cent for the 15 largest providers.

The FCA says firms refusing transfers gave two main reasons: where a transfer was concerned with a defined benefit pension or other safeguarded benefits, and where transfers were not facilitated by an adviser.

In addition, firms said they blocked transfers when investments were considered unsuitable for a Sipp, due diligence conflicts were found, occupational transfers were involved, and where the adviser “could not show adherence to FCA guidance”.

The regulator adds it found most firms who said they would never or only in certain circumstances accept insistent clients, do not ask whether the client is going against a recommendation.

It says: “If a customer is able to find an adviser willing to act on their behalf it is likely that providers will accept the transfer.”

The FCA published guidance for advisers on dealing with insistent clients in June.