The FCA has published a Policy Statement on pension transfers advice (PS18/6). This follows the FCA’s June 2017 consultation, which looked at improving the quality of pension transfer advice.
The policy statement sets out new rules on pension transfer advice (most of which come into force on 1 April 2018) and seeks views on additional changes, including adviser charging structures.
The new rules require transfer advice to be provided as a personal recommendation that takes account of a consumer’s individual circumstances; and also replace 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.
Comments can be made until 25 May 2018. The FCA intends to introduce new rules thereafter.