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

Targeted support: Turning perception into reality

Targeted support: Turning perception into reality

'Great execution and industry innovation will be what makes it truly succeed'

Ben Hampton
clock 23 January 2025 • 3 min read
Lords committee FCA name and shame report expected 'shortly'

Lords committee FCA name and shame report expected 'shortly'

FCA CEO and chair grilled on naming and shaming furore and growth

Jen Frost
clock 22 January 2025 • 3 min read
FCA will have 'a lot more to say' on vulnerability in 2025

FCA will have 'a lot more to say' on vulnerability in 2025

Treatment of vulnerable clients continues to be on regulator’s radar

Isabel Baxter
clock 22 January 2025 • 2 min read