UK. DB transfer paper shows FCA ‘moving into 21st century’, say advisers
The Financial Conduct Authority (FCA) consultation paper on advising on defined benefit (DB) pension transfers has brought the regulator’s approach into the 21st century, according to advisers.
The paper proposed a number of vital changes to regulation on DB transfers so as to mitigate the risk posed to consumers of giving up safeguarded benefits.
These included removing the default position that transferring out of a defined benefit scheme was ‘unsuitable’ for a client, clarifying the definition of an ‘insistent client’, and replacing the current transfer value analysis system, to name a few.
Darren Cooke (pictured), director of Red Circle Financial Planning, said the paper represented a ‘very important shift in emphasis’ from the FCA.
‘The “tell me why you are not most people” test still largely applies, but there is an important shift in emphasis, in the FCA recognising that since they drew up those rules, the world and pension legislation has shifted.
Full Content: City Wire
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