FCA to get tough with advisers

capital0ne

Financial advisers face a crackdown by the FCA after a wave of pensions mis-selling and investment scams.

Senior pension advisers are on notice that they are in the line of fire for failings on their watch. A number of cases show significant harm to consumers financial wellbeing.

Read more in the FT 25 Jan 2020

New_World_Man

Can’t help thinking that the scammers will not actually have any FCA connections. Good soundbite for the public to get but aiming at the wrong target.

JoeCrystal

And also, if they do (unlikely) find the advisers at wrong, what will be the redress for the customers if any? Demand that the customers to send the transfer value back as if they never got transferred out in the first place?!!

And beside if FCA is that annoyed about it, they should ought just ban the transfers outright?

Silvertabby

Anyone would think that the pensions mis-selling scandal of the 1980s/1990s never happened. People certainly don't seem to have learned anything from it.

[Deleted User]

Interesting read.

Two years ago, when I started moving my DB pension, the FCA took no view as to whether a transfer out was beneficial or not.

Now they are saying 9/10 are better not transferring.

This in conjunction with their concerns about excessive initial and ongoing charges:

https://citywire.co.uk/new-model-adviser/news/fca-db-transfer-advice-shouldnt-cost-more-than-3500/a1254565


Reluctantly, one is drawn to the conclusion that the FCA suspect many rational DB pension transfers may be compromised over time by ongoing fees that decimate, debilitate and ultimately hollow-out the pension.

Which is potentially a tragedy for those now trying to wrest control of their pensions and forced to employ FAs; but the consolation for us who have transferred out of DB pensions is that we can jettison our FA's at any time; and take control of our pensions in the spirit of the pension freedom act.

Certainly, do that before you go the compo route.