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FCA sets out next steps to improve defined benefit pension transfer market

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.”

Last updated 05/06/2020