As part of a huge clamp down on defined benefit pension transfers, the Financial Conduct Authority have issued a data request to a number of financial advisors who have recently approved transfers to check if they are giving suitable advice.

In a statement regarding the recent spike in DBP transfer requests, the FCA said: “All advisers should be clear on the FCA’s expectations when offering advice to members of the scheme. Where the FCA sees unsuitable advice, or bad practice, it will take action.

“The Pensions Regulator (TPR) is working closely with the Trustee in its role to protect savers. The FCA, TPR and MaPS believe transferring out of a DB pension scheme is unlikely to be in the best interests of most consumers.”

The advice given from financial advisors must match the long term goal, attitude to risk and be in the clients best interest; if not, this can be deemed as unsuitable and should be avoided.

Many are being swayed into transferring their pension by the prospect of getting a large lump sum payment with more financial freedom and to gain inheritance tax advantages. However, the deal often falls short as people lose the protection that comes with a DBP, meaning their entire life savings can fall dramatically in value.

Although there has been a huge clamp down recently on the dangers of DBP transfers, many are still being mis-sold advice, just as many have been in the years gone.

Mis sold investments and pensions are an area of law in which we are proud to assist our clients with. Negligent advice can cause large sums of monetary loss; which can have a negative effect on one’s mental health and personal life. Angelus Law are here to minimise the stress and inconvenience and ensure your case is handled professionally and correctly.

If you have been mis-sold pension advise, please contact us today for some free impartial advice.