The chief executive of the PFS has demanded greater protection for the public and advice profession stemming from the unintended consequences of pension reforms.
Speaking at the PFS’s London conference on 2 November, chief executive Keith Richards said he had discussed the growing issue of insistent clients with the government and regulator as early as March.
Mr Richards warned that enquiries to access cash from defined benefit pension pots were increasing as anticipated, and complaints from consumers who do not want advice, but have not been able to find an adviser willing to simply satisfy the process, were also increasing.
He said that, for the concept of pensions freedoms to operate freely and successfully in the way envisaged by the Treasury, “they and the regulators need to accept that not to facilitate an unsuitable insistent client transfer or annuity re-sale is an appropriate decision for an adviser to take. Not least because it devalues advice in the first place, but the adviser will carry liability for the outcome forever”.
According to the PFS, demand for facilitation of DB transfers is likely to grow steadily as people become increasingly aware of the option to access cash, but will need advice for pots of more than £30,000 to satisfy the new rules.
Background
In September, the Fos confirmed that it had received more than 600 complaints from consumers who were unable to source an adviser.
The data showed that one person claimed to have been approached by no less than 12 advisers who declined to be used as just a facilitation service.
