Pensions  

Advisers told they can only do set numbers of DB transfers

But since then DB transfers have been in the spotlight and the FCA has introduced new rules on advising on them - such as the introduction of a transfer value comparator.

And PI insurers have clamped down on covering them following the British Steel debacle which saw several companies suspending the transfer activity over concerns about the advice they gave.

Sir Steve Webb, former pensions minister and director of policy at Royal London, said the increased Fos compensation limit now seemed to be the “final straw” for PI insurers.

He said: “Advisers who are keen to stay in that market will shop around, so we would think that some insurers will see a market opportunity, but there are only a handful of insurers you can go to.

“People ought to be able to look for impartial advice and make an informed choice about whether to transfer out of their DB pension.”

According to the FCA study of the PII market in 2016, there are only between 10 and 15 companies actively offering this cover.

Martin Bamford, managing director at Informed Choice Financial Planning in Surrey said: “As a firm, we are not proactively seeking new clients in this space, only providing advice to existing clients and their referrals, until the PI insurance market softens a little and develops a better understanding of the risks involved when advice is done well.”