On 19 June 2019, the FCA published the results of the data it has received from firms carrying out Defined Benefit (DB) transfers and sets out the next steps in its supervisory work related to transfers.
The FCA is concerned that firms are recommending that large numbers of consumers transfer out of their DB pension schemes despite the FCA’s stance that transfers are likely to be unsuitable for most clients.
The FCA has started visiting some firms, starting with those most active in the market. These visits will allow the FCA to complete a full assessment of the firms’ approach to DB advice, focusing on key aspects of firms’ business models and processes which could give rise to harm. The FCA will also be writing to all firms where the potential for harm has been identified in the data the firm has supplied. This will set out the FCA’s expectations and the actions firms should take.