FCA video guide to pension transfer advice for consumers

The FCA has published a new 17-minute video for consumers to help them understand pension transfer advice.  The video, which can be viewed here, explains the FCA’s expectations of financial advisers when they provide pension transfer advice and outlines the process which advisers should follow.  It highlights the key information advisers should provide and the questions they should be asking.

Aspects covered include:

  • disclosure of costs & services;
  • a detailed analysis of personal circumstances
  • content of a suitability report
  • any ongoing services which may be recommended.

The FCA make it clear at outset that their message to advisers is, and always has been very clear, that generally it will not be in a client’s best interest to leave a pension scheme that will give them a guaranteed and sustainable income when they retire.

A transcript of the video is also available.

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.

ATEB Compliance offers compliance and regulatory advice.

ATEB Suitability provides report writing software for the financial services market.

Our View

While the video is not intended to provide guidance for firms, we do recommend firms to make a point of viewing it.  There should be nothing there that firms are not already aware of but it will be a useful check for firms to ensure that their defined benefit transfer process, in general, not only follows the steps outlined in the video, but also captures and considers all the points specifically identified and addressed within the video.

Action Required By You

  • Firms should view the video;
  • And/or obtain a copy of the video transcript;
  • ATEB has significant expertise in assisting firms provide transfer advice compliantly. Contact your usual ATEB Consultant if you would like more information, or contact us directly here.

About the Author

Technical Manager - Often referred to as the Oracle or the Sage, Alistair has a wealth of financial services experience. He is our go-to Technical Manager and enjoys nothing more than a complicated conundrum. Feel free to test his renowned knowledge by getting in touch.

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