Unsuitable advice prompts FCA U-turn on DB transfer assumption

Concern over unsuitable advice

Hannah Godfrey
clock • 2 min read

The Financial Conduct Authority (FCA) has abandoned plans to drop the unsuitable defined benefit (DB) transfer assumption as a result of concerns about unsuitable advice being given in the area.

In a policy statement published today, the FCA said its recent supervisory work had presented "significant evidence of unsuitable advice being provided". In a consultation released last June, the financial watchdog had proposed replacing the starting assumption that holds a DB transfer is unsuitable before giving advice with a statement in the regulatory handbook that, for most people, "retaining safeguarded benefits will likely be in their best interests". Due to its concerns about the levels of unsuitable advice, however, the FCA said: "We do not consider it is appropriate to change...

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

Law, not likes: Cracking down on social media financial promotions

Law, not likes: Cracking down on social media financial promotions

‘Every individual social post or communication must comply with the rules’

Sarah Wylie and Owen McLennan
clock 28 October 2024 • 4 min read
How Labour can support investment management vibrancy

How Labour can support investment management vibrancy

The formation of a new government – now just over 100 days’ old – has brightened the spotlight on UK financial services regulation, writes IIMI CEO Dani Hristova

Dani Hristova
clock 28 October 2024 • 4 min read
Number of non-financial misconduct reports in the City spikes in three years

Number of non-financial misconduct reports in the City spikes in three years

FCA reveals survey results

Cristian Angeloni
clock 25 October 2024 • 4 min read