The Personal Finance Society has updated its guide on pension transfers from defined benefit to defined contribution schemes for advisers.
The guidance also references the FCA’s policy statement on DB transfers published in March and consultation on whether advisers undertaking pension transfer advice should have the same qualifications as investment advisers.
In the foreword, PFS chief executive Keith Richards says the updated guide should give members clarification around changing advice requirements as well as ongoing good practice
He adds the FCA is alive to the issue and professional indemnity insurers have withdrawn cover or increased the cost of cover for many IFAs advising on pension transfers. While this is an overreaction in many instances it can only be addressed if the PFS helps establish a clear picture of what good looks like in the pension transfer space.
Richards continues: “It is critical that the advances made by the financial advice profession in recent years are not derailed by the actions of a small number of firms and I advise all our members engaged in transfer activity to remain extremely diligent in respect of the much needed advice they give to clients in this area.”