In new research carried out by AJ Bell, 80% of advisers questioned said they were still advising on DB transfers.

AJ Bell claimed that “urgent clarification is needed from the FCA on whether it plans to update the current guidance available to advisers”.

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The FCA is expected to release its consultation on advising on pension transfers tomorrow. It has been reviewing the processes of individual advice firms which has resulted in some of them ceasing to advise on DB transfers.

Although the majority of advisers are advising on DB transfers, many of them are adopting a cautious and prudent approach in their processes, according to AJ Bell researchers. They summarised their findings as follows:

· Two thirds of advisers (67%) will only advise on DB transfers as part of a full financial plan
· 70% will not accept insistent clients if their advice is not to transfer
· 89%
carry out an initial triage process to determine whether a full transfer process is appropriate
· 99% carry out a full attitude to risk / capacity for loss assessment
· 76% include cash flow modelling for the client as part of the transfer assessment

The vast majority of advisers said they disagreed with the current Transfer Value Analysis (TVAS) assumptions used to assess Defined Benefit to Defined Contribution pension transfers, the report found.