The UK’s Financial Conduct Authority (FCA) is proposing a ban on contingent charging and wants to force advisers to demonstrate why their recommended scheme is more suitable than a workplace pension scheme.
The FCA found that 69% of consumers were advised to transfer and that most would have been better off not moving their accounts. The regulator stated it had “serious concerns” about how advisers charge for advice, and that distrust in the quality of pension transfer advice was growing, according to the statement.
In a consultation paper out Tuesday, July 30, the watchdog stated that given the advantages of defined benefit pensions, the proportion of consumers advised to transfer out was too high.
“The FCA’s supervisory work has revealed continued problems in the pensions transfer advice market,” Christopher Woolard, executive director of strategy and competition at the regulator, said in the statement.
Full Content: Bloomberg
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Clifford Chance Expands Global Antitrust Team with New Partner
Dec 6, 2024 by
CPI
Spain’s Financial Regulator Awaits Antitrust Decision on BBVA’s Hostile Bid for Sabadell
Dec 5, 2024 by
CPI
RealPage Seeks Dismissal of DOJ Antitrust Suit, Citing Legal Flaws
Dec 5, 2024 by
CPI
EU Competition Chief Signals Potential Google Breakup Amid Big Tech Scrutiny
Dec 5, 2024 by
CPI
Turkey Closes Antitrust Probe into Meta’s Threads-Instagram Practices
Dec 5, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Moats & Entrenchment
Nov 29, 2024 by
CPI
Assessing the Potential for Antitrust Moats and Trenches in the Generative AI Industry
Nov 29, 2024 by
Allison Holt, Sushrut Jain & Ashley Zhou
How SEP Hold-up Can Lead to Entrenchment
Nov 29, 2024 by
Jay Jurata, Elena Kamenir & Christie Boyden
The Role of Moats in Unlocking Economic Growth
Nov 29, 2024 by
CPI
Overcoming Moats and Entrenchment: Disruptive Innovation in Generative AI May Be More Successful than Regulation
Nov 29, 2024 by
Simon Chisholm & Charlie Whitehead