Dec 8 2008
The Financial Services Authority (FSA) has announced that it is taking action to address what it describes as pension transfer advice failings, people saving for retirement may wish to note.
According to a review of the issue conducted by the organisation, which examined transfers from all types of pension schemes into personal pensions and self-invested personal pensions (Sipps) since the A-Day pension tax regime changes, unsuitable advice was found to have been given in 16 per cent of cases.
It said that it will be writing to more than 500 firms that issue advice on pension transfers informing them of the standards it expects of them.
Companies that fail to take the warning will be subject the further action, the FSA added.
"Switching into personal pensions and Sipps from existing arrangements can be an appropriate move for many people, but this is a complex area of business where consumers rely heavily upon advisors," stated Dan Waters, the FSA's director of retail policy and conduct risk.
An independent body, the FSA aims to promote orderly, efficient and fair markets.
