Today the FCA set out its next steps to improve the defined benefit pension transfer market. This included a ban on contigent charging.
Hugh Savill, Director of Conduct and Regulation at the Association of British Insurers, said:
“The ban on contingent charging is welcome and what we called for. It is the right thing to do. We welcome that exclusions are made for customers facing a shortened life expectancy or serious financial hardship. Some vulnerable customers who may benefit from a transfer and cannot afford financial advice up front may find the contingent charging model works best for them. In certain circumstances, transferring to a Defined Contribution scheme may be appropriate.”