UK financial watchdog sets out key focus for year ahead
The Financial Conduct Authority (FCA) has said there is an “inherent conflict of interest” when firms use contingent charging structures for DB pension transfers, according to its business plan for 2019/2020, where it assessed its activity for the next financial year.
Alongside DB issues, the UK regulator also said it is continuing to consult the industry on further requirements for firms to provide a range of investment pathways to help consumers choose options that meet their needs when entering drawdown.
Defined benefit transfers
The FCA plans to start a “wide ranging programme of activity”, where it may take action against any firm that continues to harm consumers while involved in DB pension transfers.
It added: “There is an inherent conflict of interest when firms use contingent charging structures. We asked for views on how these structures for pension transfer advice may cause consumer harm.
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