Defined BenefitJun 21 2017

PFS warns against pension transfer 'opportunists'

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PFS warns against pension transfer 'opportunists'

David Penney, now a chartered financial planner at London-based Penney, Ruddy and Winter, warned the FCA was concerned about the high levels of transfer requests post-pensions freedoms.

Mr Penney had previously worked at the FCA's predecessor, the Financial Services Authority (FSA), in 1999. 

At that point in time the regulator was busy dealing with the fallout from the 1994 pensions review, and Mr Penney said he feared a repeat of that mis-selling crisis.

He commented: "I think history is going to repeat itself. Based on my past experience at the FSA, I am convinced there will be a new review into the current spate of defined benefit (DB) transfers being carried out post-pension freedoms."

In February, the regulator warned that individuals were at "serious risk" of getting the wrong advice to transfer out of their defined benefit pension schemes.