Why 'polluter pays' could be final straw for DB transfer advice

Are the reforms the straw the broke the camel's back?

clock • 3 min read

The regulator's 'polluter pay' reforms mean the industry now appears to be at a tipping point when it comes to DB transfer advice, writes Brian Nimmo

The intentions behind the Financial Conduct Authority's (FCA) 'polluter pays' are admirable. They seek to drive up the standard of financial advice and ensure advisers are held financially accountable for poor advice when they let down their customers. In amidst the Consumer Duty reforms, it adds a further layer of regulation designed to protect the customer and ratchet up the pressure on advice firms to deliver high-quality services. The essence of the reforms is to make firms liable for any negative consumer outcomes as a result of poor advice, in turn, incentivising better pract...

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 must still fix investing culture, says LSE CEO

FCA must still fix investing culture, says LSE CEO

‘We’ve protected people from the downside but we haven’t exposed the upside’

Sophia Panayi
clock 20 May 2026 • 1 min read
FCA increases support for solo-regulated firms

FCA increases support for solo-regulated firms

Scale-up Unit now available to solo-regulated businesses

Jenna Brown
clock 20 May 2026 • 1 min read
Failed financial advice firms tracker

Failed financial advice firms tracker

Firms that the FSCS has confirmed as failed since the start of 2023

Professional Adviser
clock 15 May 2026 • 1 min read