The regulator allowed an adviser to complete nine defined benefit pension transfers at the end of last year despite the work being excluded from the firm’s insurance.

The advice firm notified the Financial Conduct Authority in August 2019 that it was unable to renew its professional indemnity insurance to cover defined benefit transfer activities, and was subsequently told to cease writing this type of business and transfer any pipeline clients to another adviser.

The firm objected, instead asking to continue working as normal for up to six months while the firm found appropriate professional indemnity cover – which the adviser said would save its clients their £1,250 advice fee.

The FCA declined this request but did ask for more information on each of the adviser’s pipeline clients, including what the impact of having to transfer them to a different adviser would be.

After several weeks of correspondence the regulator agreed the adviser could complete the transfers of nine defined benefit pensions, namely those which had “already been submitted to trustees of the ceding arrangement or the provider”.

The case eventually found itself on the desk of the FCA’s own watchdog, the Complaints Commissioner, who sided with the regulator and gave credit for it acting to mitigate client losses and unnecessary harm to the advice business.

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