What happened?
The FCA has introduced new, more stringent rules governing Defined Benefit (DB) pension transfers, aimed at protecting consumers from unsuitable advice. The changes include a ban on contingent charging structures for transfer advice, except in very narrow circumstances.
Speaking to Money Marketing, TCC’s David Boyhan argues that rather than being a purely restrictive measure, the new rules can benefit proactive firms as much as they benefit clients by setting a clearer standard for advice quality.
Why does it matter?
By removing the conflict of interest inherent in contingent charging, the new rules allow firms to evidence that their pension transfer recommendations are purely objective and in the client’s best interests. This aligns perfectly with modern suitability requirements and can help firms rebuild regulatory confidence in this high-risk market sector.
Supporting sources
Frequently asked questions
How do the new DB pension transfer rules benefit advisory firms?
The new rules establish a clearer and more objective advice standard, removing structural conflicts of interest and helping firms prove their suitability and value to regulators and clients.
What is the main charge structure change under the new rules?
The FCA has banned contingent charging for Defined Benefit pension transfers, ensuring advisers are paid for their advice regardless of whether a transfer proceeds, eliminating bias.
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- Pensions & Retirement IncomeTCC helps pension providers, retirement specialists, advisers, platforms and consolidators strengthen retirement income governance, evidence customer outcomes and manage regulatory risk. Our specialists support firms with retirement income reviews, ongoing servicing assessments, Consumer Duty programmes, DB transfer reviews, vulnerability frameworks, remediation projects and compliance monitoring across the customer lifecycle.
- Wealth Management & Financial AdviceTCC helps wealth managers, financial advisers, networks, platforms and consolidators strengthen compliance, evidence customer outcomes and manage regulatory risk. Every engagement is designed to deliver practical improvements, stronger governance and regulator-ready evidence. For more than 25 years, we have helped FCA-regulated firms navigate regulatory change, supervisory reviews and business growth.