Watchdog says IFA pension 'churning' continues

Consumer Focus, a statutory consumer watchdog, said it had uncovered evidence in a sample of 31 IFA contracts that advisers are unnecessarily switching clients' into products which carry higher charges, have bigger set-up costs or are higher-risk. It said its findings, outlined in Is it advisable? An investigation into switching and advice in the individual personal pensions market, corroborate those contained in an FSA review into pension switching advice in 2008. That study found unsuitable advice had been given in 16% of 500 cases it reviewed across 30 firms. "The majority of cu...