The numbers of advisers opposing a ban on contingent charging is also growing.
Contingent charging occurs when a fee for advice is only charged if a transaction takes place, for example a pension transfer. The FCA is reviewing whether this process results in good advice for clients.
Aegon researched 227 advisers for its Retirement Advice in the UK report and found growing concern about the impact of regulatory changes on the supply of pensions advice.
Nearly two-thirds of the advisers surveyed (64%) say the proposed regulations are biased towards using workplace pensions for DB transfers and will reduce their ability or willingness to offer advice. Over two thirds (71%) disagreed that transferring into a workplace pension scheme default fund would be best advice.
On the positive side, the research found that the FCA’s proposal on ‘abridged advice’ have received tentative support, with just under half (46%) of advisers agreeing the concept could be effective.
Aegon’s report looked at adviser attitudes towards future changes proposed by the Financial Conduct Authority (FCA) with research conducted in September and October.
The FCA has proposed banning contingent charging and instead introducing a short form of ‘abridged advice’, allowing advisers to offer a lower cost limited service to quickly identify which individuals should not be considering a transfer. Final rules following the consultation are expected early this year.
Aegon says its research shows advisers recognise that contingent charging could be an issue with only 16% disagreeing that it could encourage some advisers to give unsuitable advice.
However, 84% say the FCA’s proposals to ban contingent charging will reduce access to advice - a significant increase from the previous year (2018) where two-thirds (67%) of advisers agreed a ban would lead to a reduction in access to advice.
Steven Cameron, pensions director at Aegon, said: “The FCA’s drive to make advice in the DB transfer market of consistent high quality should be fully supported and many of the proposals in its latest consultation are welcome.
“However, no matter how well intentioned these interventions are, advisers remain concerned over some of the measures, particularly as they carry the risk of dramatically reducing the supply of advice. We would encourage the FCA to take on board the concerns of advisers ahead of finalising their next set of rules.”