Nearly one in three (29 per cent) advisers will advise and transact defined benefit to defined contribution transfers for insistent clients, FCA data has revealed.
In addition, nearly half (47 per cent) will advise and transact safeguarded benefits work even against their recommendation.
An FCA survey of around 200 advisers conducted to inform the financial advice market review, published today, reveals advisers approach to insistent clients.
Attitudes to existing and new clients was nearly identical.
A minority of advisers said they would give advice but not transaction insistent clients.
But around two thirds (58 per cent) would not give advice on DB to DC transfers where the client was insistent, and 33 per cent had the same attitude to safeguarded benefits.
Among those who will not transact, 69 per cent said the risk of future Financial Ombudsman Service complaints was a “very important” reason.
In addition, 45 per cent said professional indemnity insurance concerns were “very important”.
The survey also reveals a tripling (246 per cent) in the number of requests for DB to DC transfer advice from new customers.
For existing customers requests more than doubled (123 per cent).
Dealing with insistent clients has been a controversial issue since the pension freedoms launched in April 2015. A guidance note published by the regulator in 2015 has been criticised for not allaying advisers’ fears over liability.