Avoiding pension transfer pitfalls

The Financial Conduct Authority’s new rules for Appropriate Pension Transfer Analysis came into effect this month. With concerns about unsuitable transfers out of defined benefit schemes running high, this is an area that advisers – not to mention their clients – cannot afford to get wrong. Rory Percival details the regulatory position.

Rory Percival worked for 20 years in the advice sector, then ten years at the FCA and is now a regulatory consultant. He has recently published ‘An ex-regulator’s guide to defined benefit transfers suitability and controls’, which is available at www.rorypercival.co.uk/services/guides.

FCA policy statement

The policy statement – PS18/6 ‘Advising on Pension Transfers’ – provided feedback and final rules following on from the consultation paper in June 2017. The policy statement largely followed the proposed changes which, to recap, were: