The defined benefit transfers issue continues to rumble on this week.
Paul Lewis of Radio Four’s Money Box sets out his view, in Money Marketing, that it is almost always bad adviceto urge someone to transfer from a DB scheme.
He adds that we are entering a dangerous phase in terms of transfers because high transfer values may not last given the interest rate outlook.
Meanwhile actuary and blogger Henry Tapper and financial planner Al Rush go down to Port Talbot to talk to British Steel Pension Scheme membersabout transfers and what they are being told by advisers. The catalyst for transfers is the creation of a new less generous DB scheme BSPS II to which members can transfer or otherwise move to the PPF. Tapper and Rush are very far from impressed suggesting a relatively small number of pension firms are being recommended and that the risks of drawdown contracts are rarely discussed.
This is a brewing reputational problem and, it seems, advisers are split loosely into two camps. Some advisers on the comment board are critical of the criticisms.
Malcolm Smallsuggests that advisers should be helping the public to transfer and notes that it is not advisers who are driving demand; it is the members themselves worried about weak convenant.
PFS board member Julie Lord says advisers have to help the broader public understand pension freedoms including not to squander their money but she adds the bomb has already gone off.
Legislation for a cold calling ban will be introduced to Parliament in 2018.
Capita Financial Managers has agreed to pay £66mto investors in the failed Connaught Income Fund series 1. The agreement also includes Capita plc and the FCA hopes it will put most investors back to their original position. No fine will be levied.
The FCA has ruled out providing a cost template for advisers to meet MiFID IIcost disclosure requirements both pre and post sale.
Aberdeen Standard Life has defended its GARS fundagainst criticism from SCM Investing.
HMRC will no longer provide a contracted out update cancelling plans to write to the millions of the public about their entitlement and status. The government is surely contributing to the general atmosphere of pension confusionwith this move.
Canadian robo-adviser WealthSimple is looking to hire actual real advisers.Will the robot conduct the job interviews?