FCA is consulting on changes to its rules on advice relating to pension transfers, with a particular focus on transfers from defined benefit to defined contribution schemes.
The changes seek to ensure consumers get advice that considers all relevant factors, and include requiring transfer advice to be provided as a personal recommendation. Alongside this is updated guidance on assessing suitability and introducing guidance on the role of a pension transfer specialist. FCA also plans to require consumers to be given a comparison that will show the value of the benefits they are giving up in place of the transfer value analysis.
FCA commented that, invariably, it will be in most customers’ interests to keep defined benefit pensions, but also wants to ensure advice covers all options.
Consultation closes on 21 September.