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Keith Richards: will abridged advice work?

They will have to present their evidence to regulators and arbitrators who have the benefit of hindsight, and will have to rely on them imagining themselves back to a time when abridged advice was being introduced.

It is likely that some companies will take up an abridged advice service. However, the best way to tackle the risk of DB pension scheme members making poor decisions is to make sure they are properly educated about the value of the guarantees that they enjoy right from the outset: by the government, the regulator, their employer and the pension scheme.

Services like abridged advice can only make sense to scheme members when they start from a position where they appreciate what they are giving up when they transfer out.

The lack of available professional indemnity insurance to cover DB transfer advice has already had a profound impact on the number of companies now operating in this area, and time will tell how insurers feel about cover for abridged advice.

Keith Richards is chief executive of the Personal Finance Society