There is a specific rule requirement to disclose any possible disadvantages in the suitability report. The rule (COBS 9.4.7) can be seen here: http://fshandbook.info/FS/html/FCA/COBS/9/4.
Remember that a disadvantage is different to a risk. For example, there is a risk that investments can fall in value, whereas a disadvantage would be that the recommended product has higher charges than the product being replaced.
Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.
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Is your suitability report process ready for the new transfer rules? ATEB Suitability is!
Register your interest in taking part in a series of Pension Transfer Seminars.
New rules apply to transfer advice from 1 OCtober 2020. Are you ready?
ATEB is running a series of webinars covering the significant changes to the rules around pension transfer advice that apply from 1 October 2020.
New Abridged Advice Report Template & PS20/06 Rules for DB Transfer
David Anderson Suitability 2020, FCA, Pension, Pension Transfer, Update, Xplan
DB Transfer PS20/06 Update & New Abridged Advice Template