I believe there are advantages to contingent charging as well as the more widely talked about and reported disadvantages, for example, wider availability of advice to the consumer.
Surely, therefore, it would be better for the FCA to concentrate on adequate management of conflicts of interest rather than shrink the DB advice market through a complete ban?
One example is where the decision to transfer is taken away from the adviser and is made by a pension transfer specialist that checks the case.
The PTS would not in any way be rewarded for volumes of business completed and would not be targeted for any level of recommendations to proceed.
Furthermore, the number that have signed up to the Pension Transfer Gold Standard is a demonstration of the general desire to keep standards high.
I am therefore asking for more reasoned consideration and consultation (which I believe is the approach taken by the FCA in consulting until October).
In my view, it is not helpful when some people and commentators label all advisers as ‘“sharks’’ who are out to make as much money as possible.
In my experience most advisers I speak with really do try hard to get their advice right to ensure a good outcome for the client and consequently a good and continuing relationship.
Kevin Davies, NFU Mutual
Mandatory cost disclosures
While costs are not the only factor that determines whether a pensions saver gets good value for money or not, theyare a very significant factor (August 5).
On that basis, we wholeheartedly welcome the first class analysis and report by the WPC, which calls for exactly the kind of effective cost disclosure framework that will empower pension savers and those that represent their interests to shop wisely.
To my mind, the single most important recommendation the WPC is making is to replace the idea of a voluntary cost disclosure framework with a mandatory one.
This must make sense because there are many advantages in creating a level playing field; everybody that likes free markets should see that.
Leaving it to individual companies to decide whether to disclose costs properly or not is as daft as the idea of leaving it entirely to the discretion of car drivers to stick to the speed limits, or not.
We do not want carnage on our roads and we do not want mass pensioner poverty either.
Andy Agathangelou, Transparency Task Force