LEBC welcomed the recent publication of the FCA’s proposals to improve the quality of pension transfer advice.
Kay Ingram, director of public policy at LEBC The Retirement Adviser, said: “We would support a ban on contingent fee charging for this advice. We cannot escape the conclusion that a contingent fee structure must inevitably bias the advice in favour of recommending a transfer.
Speaking yesterday at the Westminster and City DB to DC Transfers Conference, in London, she added: “We believe that the changes to transfer analysis required by the FCA will strengthen the advice process.
“Pension freedoms do give certain Defined Benefit scheme members opportunities to shape their retirement income more closely to their personal needs, but also involve trade-offs of a guaranteed income for life.
“Making a recommendation to transfer must therefore ensure that the consumer fully understands what they are giving up and has explored the alternatives before accepting a recommendation to transfer.
“We have considerable experience in this area and look forward to assisting the FCA, via the consultation, on the new rules.
“Following some disappointing reports of poor advice, it is important that the whole industry helps the FCA to restore high standards of consumer protection in what can be a life changing decision.”