Proposed contingent charging ban 'throwing the baby out with the bath water'

Pension transfer proposals

Sophie King
clock • 2 min read

The proposed ban on contingent charging on DB transfers is the "wrong solution to the problem", financial adviser Scott Gallacher has said.

Last month (30 July), the Financial Conduct Authority said it was consulting on plans to ban contingent charging on defined benefit (DB) transfer advice.  In consultation paper CP19/25, the FCA expressed concern that too many advisers were delivering poor advice and said much of it was driven by conflicts of interest in the way they are remunerated. Rowley Turton director Gallacher said he did not think the regulator understood the "true costs" of running a business. He said the FCA had "significantly underestimated" the hours a DB transfer takes to complete, as well as the hourly ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA funding a perennial 'issue'

FCA funding a perennial 'issue'

Needs ‘more professional consideration’

Isabel Baxter
clock 05 December 2024 • 2 min read
FCA has 'near impossible' job to balance growth and consumer protection

FCA has 'near impossible' job to balance growth and consumer protection

Treasury Committee hearing focused on role of FCA

Sorin Dojan
clock 04 December 2024 • 3 min read
Deputy Editor's view: Naming and shaming – a busy week for the FCA

Deputy Editor's view: Naming and shaming – a busy week for the FCA

The deputy editor's Friday Night Takeaway from 15 November

Jenna Brown
clock 02 December 2024 • 2 min read