Responding to the FCA’s announcement on changes to advice on pension transfers, Philip Brown, Head of Policy at LV=, said: “The regulator’s changes to pension transfer advice are welcome news for people approaching retirement. Since the Freedom and Choice reforms, there has been a stark rise in the number wanting to transfer out of their defined benefit schemes and it’s vital that as an industry we ensure there are strong safeguards in place to protect these savers. We wholeheartedly agree advice on transfers must be a personal recommendation and explicitly showing the value of benefits given up should help ensure people aren’t unduly influenced by a big transfer value.
“We are also pleased to see the publication of a second consultation paper as, with so much at stake, it’s right the regulator continues to look at this market. In particular we welcome the review of contingent charging as, if an adviser’s fee solely depends on the transfer going ahead, there is potentially a major conflict of interest. The regulator’s continued focus on this market is absolutely necessary to ensure that only someone who would benefit from the freedoms transfers out, and not anyone who would be worse off as a result.”
About LV=
LV= employs over 6,000 people and serves over 5.8 million customers with a range of financial products. We are the UK's largest friendly society and a leading financial mutual.When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.
We are currently the UK's number one brand for Insurance and Investments, according to the 2015 YouGov Brand Index Buzz Rankings.
We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trade unions.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.