Sixty second summary
FCA proposals on pension transfer advice & contingent charging
20 Sep 2019 - Estimated reading time: 60 seconds
18 months on from their last consultation, the FCA remains highly concerned that the practice of contingent charging, where advisers only get paid if the transfer takes place, creates a conflict of interest that might incentivise poor advice.
Under pressure from the industry, including the Work and Pensions Committee, and clearly concerned about a mis-selling scandal brewing, the intent of this latest FCA consultation feels far stronger.
We'd be highly surprised not to see a ban on contingent charging applying from early next year.
Here we summarise the FCA's proposals and share our views.