5,000 DB transfers completed by firms later told to exit the market

Almost 5,000 pension transfers were completed by firms who were later told to exit the market, after the Financial Conduct Authority (FCA) found issues with their advice, it has been revealed.

According to the FCA, 4,659 transfers were arranged by 19 companies which have now ceased pension transfer activities since 2015, a Financial Times report found.

Last month, the FCA issued an update on its investigation into the defined benefit transfer market, which said it was still “very concerned” that too many firms were not providing suitable advice on transfers.

The FCA found less than 50 per cent of the advice it reviewed was suitable, noting that two firms ceased providing transfer advice, while two more altered their business model, following the regulator’s assessments.

Speaking to the Financial Times, the FCA said that where it was found consumers have suffered detriment due to bad advice, it would ensure “appropriate steps are taken", but would not say if it had taken specific action against the 19 firms.

It added that anybody with concerns around their advice should complain to the firm.

Financial Inclusion Centre co-director, Mick McAteer, told the paper: “The FCA should be requiring these businesses, where it had the most serious concerns, to write to their customers to alert them about the FCA’s involvement.

“This is such a serious issue because the potential impact on an individual of being wrongly advised to transfer their DB pension is much greater than being mis-sold PPI or an endowment, because of the huge sums involved.”

McAteer added that the regulator should be pulling out all the stops to ensure people who could be affected are aware of their right to make a complaint.

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.


Inside the world of high net worth lending
The mortgage market continues to evolve, and so too does the answer to the question: what is a high net worth individual in today’s market? In this episode of the Mortgage Insider podcast, host Phil Spencer is joined by Stephen Moroukian, Head of Product and Proposition for Real Estate Financing at Barclays Private Bank, and Islay Robinson, founder and CEO of Enness Global. Together, they explore what brokers really need to know when supporting high net worth individuals.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.