UK. Pension leaders file complaint over FCA ‘advice trap’
Pensions industry representatives have written a joint complaint to government ministers over new guidance from the Financial Conduct Authority, which they warn could see trustees deemed to be giving regulated financial advice.
Read also UK. TPR responds to questions on their effectiveness on a pension scam case to WPC
The Association of Consulting Actuaries, the Pensions Administration Standards Association, the Pensions Management Institute and the Society of Pension Professionals wrote to Guy Opperman, minister for pensions and financial inclusion, and John Glen, economic secretary to the treasury, to protest the FCA’s move.
Read also UK. Will the FCA defined benefit pension transfer plan work?
The financial watchdog’s latest consultation on advising on pension transfers warned attempts to provide illustrative transfer values by trustees, or to demonstrate the value of members’ benefits on the open market, could now be construed as advice.
Read also Japanese head of world’s biggest pension fund looks beyond sovereign debt for future returns
The new stance would see a “significant minority” of schemes caught, and they “may need to change their retirement process or risk providing advice”, according to the industry leaders.
More importantly, they argued, it will “restrict pension scheme members’ ability to make informed decisions about their pension benefits”, leaving savers in defined benefit schemes in the dark about their options.
Read more @FT Adviser
