Are you a victim of bad pension advice? Compensation hopes for savers cheated out of generous final salary schemes
Cheated savers who were persuaded to move their money out of generous final salary pension schemes could now be in line for compensation.
City regulator the Financial Conduct Authority (FCA) last week announced a ban on controversial charges that meant financial advisers were only paid if a pension transfer went ahead, when in reality it was rarely a good deal for the client.
The watchdog says it found an ‘unacceptably high’ proportion of savers in defined benefit schemes had been advised to transfer out.
The Financial Conduct Authority announced a ban on charges that meant financial advisers were only paid if a pension transfer went ahead, when in reality it was rarely a good deal
The regulator says savers may have been mis-sold if their adviser did not ask you about their retirement spending plans, total savings, appetite for risk and health.
If a saver is unhappy with the advice they received, they should first make an official complaint to their adviser, who has eight weeks to respond.
The saver then has six months to take the complaint to the Financial Ombudsman Service (FOS).
If the advice firm has gone out of business, they can submit a claim to the Financial Services Compensation Scheme, which could compensate them up to £85,000.
Go to fca.org.uk/consumers/defined-benefit- pension-transfers/advice-checker