Defined Benefit  

Devilish details of new pension transfer rules

Further guidance may be needed to clarify the FCA’s expectations that advisers should be exploring clients’ attitudes to the general risks associated with a transfer, in addition to their attitude to investment risks.

How firms can carry out an appropriate ‘triage’ service (an initial conversation with potential customers), without stepping across the advice boundary, by providing generic, balanced information on the merits of pension transfers, will also feature.

A requirement for firms to provide a suitability report regardless of the outcome of advice is also being put forward by the watchdog and the FCA is seeking views on whether to intervene in relation to charging structures.

This could include introducing a ban on contingent charging, which is when a fee for advice is only paid when a transfer goes ahead.