Following the suspension of DB transfer advice business at the Glasgow firm Intelligent Pensions, as agreed with the FCA, more in the industry are calling for a consultation on DB transfers which is seeing an increasing demand.
Demand for transfers out of a defined benefit scheme are increasing. Such moves are not to be taken lightly and are unlikely to be suitable for a majority of people, even with high transfer values as are being seen at the moment.
Advising on DB transfers is complex and high risk; both for the firm of advisers and for the individual taking the advice.
Many firms in recognition of this have chosen not to offer a DB pension transfer review service. It requires experienced pension transfer specialists, a robust and thorough approach and as it requires significant interrogation and analysis, it can be expensive.
What is the position if a firm does not recommend a transfer and the client wants to go ahead anyway - called an insistent transfer? Some firms are willing to process these insistent transfers and others, Like Close Brothers Asset Management, will not.
If the FCA decides to examine this area in more detail, and seeks an open consultation, this can only be good news for individuals looking for the best possible advice to secure their financial future.
Glasgow-based retirement specialist Intelligent Pensions has agreed with the Financial Conduct Authority (FCA) to suspend its defined benefit (DB) transfer business. The firm said it was working with compliance and legal experts to be able to convince the FCA "quickly" its business was delivering "good outcomes for clients". A note on the FCA Register read on Wednesday Intelligent Pensions must "immediately cease to provide advice in relation to the transfer, or conversion, of safeguarded benefits under a pension scheme to flexible benefits."