UK regulator shelves contingent charging ban for DB pensions
Industry split as contingent charging likened to commission.
The Financial Conduct Authority has shied away from introducing a ban on contingent charging, despite concerns around conflicts of interest and incentives to recommend pension transfers.
In its 'Improving the quality of pension transfer advice' consultation document, the FCA included discussion questions around the different charging structures used in pension transfer advice.
It focused on contingent charging, where an adviser is generally only paid if a transfer takes place. Please link to International Adviser to read the full article by Kirsten Hastings.