New Rules on Pension Transfer Advice.
Seen at Andrew Collins 03 March 2018.
The FCA has today published new rules on pension transfer advice and is seeking views on further changes, concerning adviser charging structures.
In June 2017, the FCA proposed changes to the rules on advice on transfers from safeguarded benefit schemes, mainly relating to transfers from defined benefit to defined contribution pension schemes. Following consultation, final rules have been published to ensure transfer advice considers relevant factors.
The new rules include:
- Requiring transfer advice to be provided as a personal recommendation that takes account of a consumer’s individual circumstances
- Replacing the current transfer value analysis with a requirement to undertake a personalised analysis of the consumer’s options and a comparison to show the value of the benefits being given up
Following on from this, the FCA has also published a consultation paper [Click Here] proposing further changes to its rules and guidance. This includes requiring advisers undertaking pension transfer advice to have the same qualifications as investment advisers.
This goes further to consult on whether the FCA should intervene in relation to charging structures, given the difficulty in managing the conflicts of interest that exist when providing transfer advice: this could include a ban on contingent charging.<