The only answer moving forward, which is already happening, is for advisers to stop doing DB transfers on a wholesale basis and only transact DB transfers when the client’s circumstances clearly show it is the right thing to do.
Galleon Wealth Management
Cut advisers some slack
Regarding the FCA comment: “We have concerns that advisers may be recommending products with an ongoing advice requirement, potentially instead of more suitable options that do not have ongoing fees.” (‘FCA warns of suitability risks in advice firms looking to sell’, Feb 18).
Many IFAs looking to retire now will have built up a business over many years.
They will have survived a huge amount of regulatory change and just about every attempt by regulation to ensure the business they have built does not, on an exit, provide them with any value at all.
Oh, and to ensure that they remain responsible for the advice until they die.
Why? In many cases these are small businesses built and surviving on the basis of great client relationships built on trust and integrity.
Please FCA, just cut some slack for these companies – unless the bigger picture is to ensure that financial advice is delivered only by the courts, social services and the Treasury.
Or perhaps that is the grand plan?
Pensions system ‘unholy mess’
Your article illustrates what an unholy mess the whole pension system is (‘Warning tax relief cut could lead to DB contribution hike’, Feb 19).
Successive governments have fiddled with it to the point where it is both grotesquely complex and unfair –doctors being unwilling to work extra hours is one example.
And another example being the gold-plated public sector pensions that will ultimately be paid for by the taxpayer and therefore quite unfair to anyone, owners of small business and the self employed, who have to pay for their pensions themselves.
System changes that inevitably have unintended consequences need root and branch reform, not further tinkering just because the chancellor wants to get his hands on an extra £10bn.
So please sit back and think, Rishi Sunak.
Mark St Giles