5th June 2020
Hundreds of advice firms give up DB permissions
In crackdown reported on the defined benefit market and published today (June 5) the FCA warned it would continue its removal of firms from the market were it found unsuitable advice was "unacceptably high".
Most in this field are smaller firms, the least best resourced to cope with a claim for 'bad advice'.
The question to ask is why, since the transfer crisis of the nineties, yes three decades ago, does any firm want to go near this type of advice.
The PI insurers have been hinting at this for years as has the PIA, FSA, FCA, FOS and the FSCS which ends up with the compensation payment that is in turn passed back to those firms that remain.
Just because permissions have been withdrawn does not create mass absolution.
The FCA should ban this advice sector entirely, some consumers may be seen to be disadvantaged but the cost savings to the advice sector would massively outweigh any consumer detriment.
Instead of compensation, how about for all the DB bad advice cases being placed in a version of a bad bank that could undo the transfer, if possible, and recreate a hybrid one size fits all DB vehicle.
Just a thought?
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