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Personal Finance Society
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PFS statement regarding FCA's proposed changes to advice on pension transfers

We welcome the FCA's new proposals on advice relating to pension transfers, as it rethinks the regulator's fundamental starting point regarding pension transfers. 

It recognises that in some cases DB transfers can be beneficial to clients, provided the sound and informed judgment of an experienced professional financial adviser is called upon. The decision gives much needed clarification to advisers and their clients to examine each situation according to its individual merits, and also helps to allay advisers' concerns over retrospective retribution.

The requirement to disclose a Transfer Value Analysis statement is a good step but on its own is not sufficient, and we welcome the fact that this must be combined with the other proposal mandating a personal recommendation in every situation to ensure that the nuances that sit underneath the TVA can properly explained.

Overall we think the regulator has made some sensible proposals, which we think will constitute a critical first step towards addressing this complex issue and also helping to resolve the insistent clients problem. We look forward to actively participating in this debate and responding to this consultation by 21 September.

The FCA has also announced it would look into the need for pension transfer specialists who are not qualified professional investment advisers and vice versa. We support the FCA opening up the discussion around qualifications, experience and continuing professional development of pensions transfer specialists, and we look forward to contributing to this discussion.

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