Commenting on the publication of final rules and guidance from the Financial Conduct Authority’s consultation on improving the quality of pension transfer advice, Steve Webb, Director of Policy at Royal London, said:
"It was always simplistic to say that all the problems around transfer advice at British Steel and elsewhere were due to contingent charging so it is good that the FCA has shied away from a knee-jerk reaction such as abolishing contingent charging.
The plans to make sure transfer advisers are well-informed on investment issues are welcome and should help to avoid consumers ending up with poor value investment solutions.
The biggest disappointment is on triage, where the FCA is largely re-stating its original views. There really does need to be a safe space where advisers can signal that they are very unlikely to recommend a transfer in a particular case without having to go through the entire advice process. This is a missed opportunity to improve outcomes for clients."
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About Royal London:
Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June.
At Royal London, we’re proud to champion the value of impartial advice. We believe it plays a crucial role in connecting people with the products that are right for them – and is key to delivering better outcomes and experiences for our customers. At the same time, it helps to build trust in our products and services.
Royal London works alongside advisers not in competition with them. That’s why we’ve made some key commitments to the intermediary market. You’ll find more detail on our commitment to advisers at http://adviser.royallondon.com/campaigns/our-commitments/