The FCA has published CP17/28, a consultation paper on the proposal to formalise rules on dealing with insistent clients. The rules will be based on what was originally guidance in Factsheet 035 (February and June 2016) in relation to pension reforms. However, the rules will apply to any kind of business not just pensions transfers, conversions or opt-outs.
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Since the pension freedoms came into being in April 2015, there has been a marked increase in the number of clients wishing to effect a pension transfer contrary to advice received. The FCA intends to formalise guidance to advisers in new rules in response to the feedback they have received from firms. The consultation paper gives firms an opportunity to give more direct feedback to the FCA. It is worth reading even if you do not intend to give feedback so you can get a feel for what is coming.
Read the fact sheet and consultation paper.
If you need any more information meantime, contact your usual ATEB consultant or click here.
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So, it’s right for the client to transfer … but should the transfer be done NOW?
The Office of the Public Guardian has produced a helpful guide for firms in how to deal with customers where a power of attorney is in place.
These could be of interest.
Principals and Appointed Representatives – action needed
Alistair MacDougall Compliance 2016, FCA, PI
Following recent FCA investigations that resulted in a Dear CEO letter, firms that have Appointed Representatives need to review the adequacy their governance and supervision.