It came as the regulator published new data received from firms carrying out transfers.
The watchdog says it has “repeatedly made clear its expectations of financial advisers as well as strengthening the rules around pension transfer advice”.
But, despite this, the regulator claimed “too much advice the FCA has seen to date is still not of an acceptable standard”.
The FCA expressed concern that firms were recommending large numbers of consumers transfer out of their defined benefit pension schemes despite the the regulator’s stance that transfers “are likely to be unsuitable for most clients”.
Megan Butler, executive director of supervision, wholesale and specialists at the FCA, said: “We have said repeatedly that, when advising on DB transfers, advisers should start from the position that a transfer is not suitable.
“It is deeply concerning and disappointing to see that transfers are still being recommended at the levels we have seen.
“Deciding whether to transfer out of a DB scheme is one of the most complex financial decision a consumer may have to make and it is vital customers get high quality advice.
“Our ambition is for pension transfer advice to reach the same standard as that of the rest of the financial advice market.”
The FCA surveyed 3,015 firms and found that between April 2015 and September 2018 and found that:
• 2,426 firms had provided advice on transferring their DB pension;
• 234,951 scheme members had received advice on transferring;
• Of those 162,047 members had been recommended to transfer out and 72,904 had been recommended not to transfer;
• The total value of DB pensions where transfer advice had been provided was £82.8bn with an average value of £352,303;
• 1,454 firms had recommended 75% of more of their clients to transfer. One reason a firm may be recommending a large number of clients to transfer is if the firm has a robust initial guidance service triaging clients.
• 1,346 firms reported data on the total number of clients who had not proceed past the firm’s initial guidance.
The total number of clients reported as not proceeding to advice was 59,086.
When these ‘triaged’ clients were factored in 55% of clients were recommended to transfer.
The FCA says that although the data is not an assessment of the suitability of advice, it gives the information needed “to focus its supervision work to drive up the quality of advice”.
The FCA says it had already started visiting some firms, starting with those most active in the market.
The visits were said to 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.