Clarity on Adviser Pension Transfer Liability Needed from the FCA

07 May 2015

New research from the Association of Professional Financial Advisers (APFA) highlights the uncertainty around pension transfers under the government’s pension flexibility reforms. In a survey of advisers conducted by NMG Consulting, only a quarter of advisers (27%) are willing to undertake pension transfer requests from DB scheme members; just over half said they would not and a further quarter were undecided.

The survey also indicated that just over half of advisers (54%) are seeking additional clients from amongst those people looking to take advantage of the pension reforms, although a third of advisers (35%) were not.  Of those that were seeking more clients, nearly a third had registered with the MAS Directory and one in six invested in additional staff training. 

Chris Hannant, Director General of APFA, said, “It is interesting to see how advisers have reacted to the pension reforms. Over half of advisers are unwilling to undertake pension transfer requests and with over a quarter still unsure.  This highlights the uncertainty for advisers and the need for the FCA and FOS to clarify the position on advisers’ liability when they undertake a pension transfer.”

Chris added, “For those who do access their pension pots they should consider the long-term impact their decisions will have on their financial affairs. Consumers who undertake advice will be better placed to make those decisions so we encourage those who take advantage of the reforms to seek financial advice.”