FIN. TeamFCA has updated on its work looking at how firms are advising customers on defined benefit pension transfers. It had noted the risks that many firms refer their customers to specialist transfer firms. FCA is concerned these transfer firms sometimes give advice without considering the receiving scheme or investments, or knowing the intentions of the referring firm for the customer. This leads to risks of unsuitable advice and the customer’s investment ending up in scam or inappropriate investments. FCA has now consulted on changes to its rules, and will take the findings from its supervisory work into account when it decides what to do following the consultation. In the meantime, it expects firms to consider its current findings.
