The FCA remains "extremely concerned" about firms
exploiting consumers'lack of knowledge when transferring from
defined benefit schemes.
In April 2015, the Government gave consumers with defined
contribution pensions more freedom around how they could access
their pension savings. Although the changes only applied to DC
schemes, it has led to members with DB pensions transferring to DC
to take advantage of the freedoms. At the same time, the Government
introduced a requirement to members transferring more than GBP
30,000 of DB benefits to have first taken independent financial
advice.
In October 2017, the FCA published research that only 47% of
advice they reviewed on DB to DC transfers could be shown to be
suitable based on the information in the file. The restructuring of
the British Steel Pension Scheme towards the end of 2017 became a
high profile example of members being given poor advice. The FCA
review found that only 51% of the advice could be shown to
