Fear of future complaints hangs over DB advice

Fear of future complaints hangs over DB advice

Advisers still worry they may be hit by future complaints over historic defined benefit transfer advice, according to a poll by FTAdviser.

Just over half (51.4 per cent) of respondents said their "biggest fear" over DB transfer advice was that they might get bitten by complaints in the future. 

The poll, carried out on Twitter, canvassed views on the topic of DB transfers, one of the big subjects that will be discussed at our flagship Financial Advice Forum.

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This will be held in-person on September 22 at the Financial Times' prestigious headquarters, Bracken House.

Ahead of the Forum, respondents to the poll were asked: "What is your biggest fear over DB transfer advice?"

While half said future complaints, a further 20 per cent said they feared rising professional indemnity insurance costs thanks to DB transfer advice. 

The same percentage also said they have just stopped doing DB transfer advice altogether. 

Only 8.6 per cent of respondents felt that future rule changes around DB transfer advice was something about which advisers should be concerned. 

In August, FTAdviser reported on data from XPS Pensions Group, which showed approximately 94 per cent of defined benefit transfers registered as having one or more scam warning signs.

The XPS’s Scam Flag Index found despite a slight fall from 97 per cent in June, July marked the second month in succession where the rate had been in excess of nine in 10 cases.

The issue of DB transfers, as well the incoming dashboard and the success of auto-enrolment 10 years on, will be discussed at the upcoming FTAdviser Financial Advice Forum.

To book your place, visit the events page here