The total value of pension transfers fell from £10.6bn in the first quarter of the year to £8.2bn in the second quarter, the latest figures from the Office for National Statistics show.
According to AJ Bell, this is the first drop in value of pension transfers since the second quarter of 2016.
The figures coincide with Aegon research into the defined benefit transfer market that shows strong support among advisers for an effective triage service.
More than half (56 per cent) of advisers support the FCA establishing a workable triage process on transfers.
The aim of a triage service is to offer information and guidance to clients considering seeking advice on DB transfers, without this being classed as a personal recommendation.
The research finds less than a quarter (21 per cent) of advisers say they want a contingent charging ban.
Despite efforts by the FCA to clarify its expectations around “what good looks like” for DB transfer advice, the research shows 44 per cent of advisers think the new rules governing pension transfers are now clear enough.
However, 35 per cent of advisers disagree with this statement, which Aegon says is worrying with the new rules coming into force on 1 October.
These findings come as the industry waits for the FCA’s feedback on its latest round of proposals on DB transfer advice expected soon and a fall in the sum of money transferring out of DB schemes.
Aegon pensions director Steven Cameron says: “Advice on DB transfers is complex and inevitably comes at a significant cost. With the FCA continuing to stress that for most people, transferring will not be suitable, it’s important that advisers can help clients identify whether or not it is likely to be worth their while seeking advice.”