DB transfers – what impact will the contingent charging ban have?

From 1 October 2020, all new defined benefit (DB) transfer advice must be charged for on a non-contingent basis. An individual pays the same charge whether the advice is to stay in their DB scheme or transfer to a defined contribution (DC) arrangement.

Like Comment

From 1 October 2020, all new defined benefit (DB) transfer advice must be charged for on a non-contingent basis. An individual pays the same charge whether the advice is to stay in their DB scheme or transfer to a defined contribution (DC) arrangement.

This is a big change for many financial adviser firms. It is a change that the Financial Conduct Authority (FCA) hopes will eliminate up to £1 billion of harm to consumers each year. For some advisor firms, it will make giving DB transfer advice unprofitable. But whilst much has changed, much also has stayed the same. Depressingly, there are currently headlines about large numbers of transfers being taken from Rolls Royce’s DB scheme in the wake of mass redundancies. The FCA and TPR have jointly issued warning shots to the financial advisers involved. Nobody wants another repeat of the British Steel episode. 

You can read the full blog here.

Barnett Waddingham

Barnett Waddingham is proud to be a leading independent UK professional services consultancy at the forefront of risk, pensions, investment and insurance. From small beginnings with just 20 people, we’re now a team of over 1,280 people in eight offices. 73 are partners, each delivering on our values and our promise, ensuring the highest levels of trust, integrity and quality. Everything we stand for at Barnett Waddingham is embedded in our promise – to do the right thing. We’ve applied this meaningful principle across all aspects of our business with continued success. Our continued and long-term commitment to delivering value is our promise to all our people and clients.
22 Contributions
3 Followers
0 Following

No comments yet.