FSA update on pension switching advice

by Gill Montia

Story link: FSA update on pension switching advice

The Financial Services Authority (FSA) has published the findings of its follow-up work aimed at improving the quality of pension switching advice.

The regulator says it has seen great improvement in the market, with many firms reviewing past procedures to deliver improved outcomes for customers.

However, there remain a number of firms still giving high levels of unsuitable advice and some are being required to carry out past business reviews that the FSA estimates will deliver more than £150 million in redress to customers.

Of the twenty-two firms reassessed following the initial review in 2008, six have been referred to the FSA’s enforcement division.

FSA director of conduct risk, Dan Waters, says: “The actions we have taken to raise standards have driven significant change in the market and will see large sums of money returned to customers who received poor advice.”

He adds: “Although many firms have changed the way they operate, we remain concerned that some continue to give poor advice.”