Experts react to DB pension transfer ruling
By Tom Carnegie, 26 Mar 18
Pension experts have welcomed the clarity the Financial Conduct Authority (FCA) has established for defined benefit (DB) pension transfers through its updated rules. But they warn further, lengthy, consultation may not be the best way to address issues of poor practice that have come to prominence in recent months.
Carolyn Jones, Head of Pensions Products at Fidelity International, said while it welcomed the rules, the industry also needs certainty they will not be changed at later dates.
“Advisers need to be given as much certainty as possible in order to have the confidence to give advice as they need to be sure that by working within current regulatory requirements and expectations, these very same rules are not at risk of challenge in the future,” Jones said.
He said the FCA needed to find a balance between adequately protecting customers and providing more prescription and certainty to advisory firms, while still allowing enough flexibility to tailor the advice process and deliver suitable scalable solutions.
“Where appropriate and suitable, we want to see customers receiving full advice on the transfer or conversion of their safeguarded benefits.
“Customers must be confident that the advice they have received is right for their individual needs and circumstances, and that it reflects and makes clear the risks and benefits of giving up a safeguarded benefit,” Jones said.
Tags: Aegon | DB pensions | FCA | Fidelity | Old Mutual | Royal London
Christopher Lean says:
Would it not have been a more balanced article if the opinions of firms with pension transfer permissions had been considered as well? The new rules will affect the way in which pension transfer advice is given and the companies quoted are not advisers.