UK. Contingent charging ban could cost advisers £445m
The financial regulator estimates the advice market will see its revenue drop by as much as £445m a year as a result of the ban on contingent charging.
According to the regulator’s own calculations, the ban will cost advisers between £360m – £445m a year in lost revenue as a result of a drop in demand for and a lower cost of pension transfer advice.
This is alongside an estimated cost of between £399m – £598m in lost fee revenue as more consumers, who opt to transfer, transfer into workplace pension schemes as opposed to self-invested personal pensions, and as such are less likely to require ongoing advice.
This morning (July 30) the Financial Conduct Authority proposed a ban on contingent charging as it warned the proportion of consumers advised to transfer out of defined benefit pensions was currently too high.
Read more @FT Adviser
