He said: “[...] With the size of the DB transfer advice market shrinking dramatically in the face of tougher regulation and rising professional indemnity (PI) costs, many people who would benefit from advice simply cannot access it.
“And where someone would be better off switching from a DB to a DC scheme – for example because the death benefits are more favourable – if they cannot speak to an adviser they risk being stranded in a sub-optimal financial position.”
Meanwhile, Dominic Murray, independent financial adviser at Cameron James, said it was important not to reduce competition which may then disadvantage the consumer down the road, via choice, quality and price.
But he added that it could be positive that firms were leaving the market if the quality of advice were to improve.
Mr Murray said: “This is a bit of a double-edged sword. On the one hand, you never want to see the amount of choice in the industry shrink, but on the other hand, if these firms weren't providing the best quality of advice, then it is a good thing that the density of good advice is increasing.
“The 103 new entrants was perhaps the one statistic that stuck out to me the most. Perhaps it is an indicator that potential new entrants have seen a gap in the market and are looking to take advantage, which hopefully means there is another option for consumers going forward.”
What do you think about the issues raised by this story? Email us on firstname.lastname@example.org to let us know