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.
Ian Brown, pension expert at Old Mutual Wealth, said it was no surprised the FCA had done a U-turn on its “undesirable” starting assumption.
“The FCA has taken sharp criticism from the Work and Pensions Committee on pension transfers so it’s not surprising it has gone back on an adviser’s starting assumption around DB transfers for now.
“People can take on substantial risks when they transfer from their final salary pensions and so having a cautious starting point is sensible,” Brown 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.