Action plan
Setting out the strategy taken by the FCA, Bailey explained that it is currently in the third phase of its plan.
Phase one ran from October 2015 to March 2016, during which it assessed information from six pension transfer advice firms. Phase two started in December 2016 and sampled files from an addition 16 firms.
The regulator, as of July 2017, is currently in phase three where it is assessing the significant increase in transfer activity. Most recently, in December it sent formal requests for information to 45 firms.
This work “has allowed us to take targeted action where we have found concerns that need addressing – including the referral of 14 cases to Enforcement for investigation in relation to the provision of pension transfer advice”, Bailey said.
Phase four is currently in the planning stage, during which all regulated firms holding the pension transfer permission will receive be asked to provide data for analysis.
Action taken
Bailey said that, since January 2016 the FCA’s specialist scams supervision team has:
- Opened 338 cases for investigation
- Carried out 33 firm visits
- 24 firms have voluntarily offered to vary their permissions
- 17 skilled persons reviews have been commissioned
- 13 cases have been referred to Enforcement for investigation (in addition to the 14 mentioned above).
