Work and Pensions Committee Chair comments on Financial Conduct Authority (FCA)'s policy statement and consultation on pension transfer advice.
Pleased the FCA is listening
Commenting on the consultation and revised rules on defined benefit transfer advice published by the FCA, Rt Hon Frank Field MP, Chair of the Committee, said:
"I am pleased that the FCA is listening to the Committee. Purging the inherent conflict of interest posed by contingent fees is a necessary, although not sufficient, step, towards giving the public the assurance of an unbiased and professional service from the financial advice industry.
Dropping the starting presumption that a defined benefit transfer is a bad idea would have sent entirely the wrong signal. The FCA should now take the battle against the pension-snatchers further by banning contingent charging on defined benefit transfer advice.
As pension transfers surge to unprecedented volumes, the disturbing amount of unsuitable advice in this area poses a clear and present threat to the nation’s pension savings."
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