Defined Benefit  

DB adviser market shrinks as 4 in 10 offer transfers

The FCA marked the suitability of DB transfers as a red flag a number of years ago and last July announced it would ban contingent charging — when a client only pays for the advice if they go ahead with the transfer — after detecting large volumes of sub-standard advice.

Aegon and NextWealth’s report shows 84 per cent of advisers either strongly agreed or agreed the contingent charging ban would reduce access to advice.

Despite this, 37 per cent thought the proposals would be effective in reducing unsuitable transfer advice, while 56 per cent thought contingent charging had led to some firms giving unsuitable transfer advice.

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