LCP says it is disappointed that an update to the FCA’s website suggests a significant push back.
The FCA planned rule changes after expressing concern about widespread “unsuitable” advice in the Defined Benefit pension transfer market.
In July 2019 the FCA published proposals to overhaul DB transfer advice (CP19/25), including plans to ban most ‘contingent’ charging, to introduce ‘abridged’ advice and to tackle high charges post transfer.
These changes were expected to be implemented soon but the impact of Coronavirus has now meant a deferral.
LCP said until yesterday the FCA website said: “We will consider the feedback we receive on this Consultation Paper and publish our finalised Handbook text in a Policy Statement in the first quarter of 2020.”
However yesterday the FCA changed its website to say: “We will publish our finalised Handbook text in a Policy Statement in the second quarter or third quarter of 2020.”
Clive Harrison, partner at LCP said: “If the FCA believes that the consumer detriment from poor quality advice runs into billions of pounds, it is very disappointing that measures designed to improve the advice market have been delayed.
“Given the particular concerns in the current Covid-19 environment about pension scheme members being vulnerable to scammers, and poor quality advisers taking advantage of members’ fears, it is vital that consumer protection measures are maintained as far as possible, despite the present situation.”