After the introduction of Pension Freedoms in 2015 the Financial Conduct Authority (FCA) has been monitoring the defined benefit (DB) transfer market closely. Following a hige pensions mis-selling scandal with British Steel, the FCA announced a review of defined benefit transfers and how financial advisers charge for their services.
The FCA updated its website today and has delayed DB transfer charging rule changes for up to 6 months. The FCA have been monitoring the defined benefit market since the surge in tranfers and raised concerns to firms that had given poor advice.
In July 2019 the FCA published proposals including a ban on contingency charges and introduce abridged advice to stop ongoing charges post transfer. The changes where expected to happen immientely until their decision to delay transfers.
Why the delay, the FCA has a duty to protect the consumer from poor advice. That said, may be their stance on what good advice is may change given many peoples views may change when we have coronavirus under control.