FCA to quiz firms with DB permissions

The FCA announced earlier this month that it will be contacting all firms who hold permission to advise on DB pension transfers and other safeguarded benefits, to request further data to allow them to continue to understand the shape of the entire DB transfer advice market.  (The data request will be sent from pensiontransfers@fca.org.uk)

We have been advised that whilst the FCA request is not mandatory, they do expect firms to complete the request and will be monitoring completion and they will contact firms that do not appear to be engaging.

The FCA are planning to issue the requests this week and firms will be asked to submit their response by 31 July 2020.

A copy of the questionnaire can be viewed here.

Except from FCA Questionnaire: “All questions that follow relate to pension transfers meaning transfers from defined benefits (DB) pension schemes or other safeguarded benefits (excluding guaranteed annuity rates). All questions relate to activity in the periods noted.”

Excerpt from FT Advisor: “As part of its clampdown in the defined benefit market the FCA said it had collected transfer data from 3,000 firms, and of these provided “detailed feedback” to more than half of them.

As a result of its intervention more than 700 advice firms relinquished their permissions to advice on pension transfers.

Of these firms, 55 withdrew from the defined benefit market after the FCA discovered they did not have adequate professional indemnity insurance.

The regulator said whilst it recognised the professional indemnity market had hardened and costs had increased, advice firms were “generally able” to source insurance.

It also warned it had seen firm owners reducing financial resources by withdrawing assets or changing their corporate structure to avoid liabilities, and promised to take action where this could leave it unable to rectify poor advice.”

If you have any issues completing the survey or you would like some guidance on your compliance obligations please don’t hesitate to contact us directly on (0161) 521 8641 or email info@b–compliant.co.uk