The number of customer complaints made to the Financial Ombudsman Service (FOS) relating to defined benefit (DB) transfers rose by 44% in 2018/19 in comparison to the previous year, according to research from Duff & Phelps.
The global adviser made a FOI request, and found that the FOS received 798 complaints during the 2018/19 financial year and upheld 39% of cases in favour of the customer. Over the same period in 2017/18, FOS received 553 complaints and upheld 30% of cases in favour of the consumer.
Managing director in Duff & Phelps' compliance and regulatory consulting practice in London, Mark Turner, said: “The number of customers coming forward to raise a complaint with the FOS continues to rise. Since the introduction of pension freedoms, some 69% of individuals were advised to transfer out of their DB pension, according to FCA data.
“Through their review work, the FCA is concerned that unsuitable transfer advice has been and is still being given. The FOI data reveals the FOS is upholding more cases in favour of the customer this year than last, which sends a clear message that the DB transfer market is very much under the eye of the regulator.”
The FCA is responding with plans to ban contingency charging for DB pension transfers in most cases due to the difficulty it could create for advisers with managing conflicts of interest.
The regulator has already proposed the concept of abridged advice, which aims to extend the availability of advice at a low-cost to customers.
Turner added: “The new measures being consulted on by the FCA will hopefully support the provision of independent, quality advice that consumers need. In some cases, a transfer from a DB to DC scheme can be appropriate, but advice must reflect the specific circumstances of each individual.
“There is most certainly an important role for the adviser, and it would be a shame if regulatory changes lead to quality advice becoming harder to get. Expect this to remain an area of focus by consumers and regulators alike for some time.”
Latest News
-
Average mortgage rates creep up for first time in eight months
-
Titan Wealth agrees acquisition of Blacktower Group
-
Savers increasing allocations to fixed accounts, research shows
-
Air warns older borrowers could be in for mortgage shock
-
SIPP withdrawal requests jump 33% ahead of Autumn Budget
-
Vida Group’s profit increases 463% in H1
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories