Changes are on the way for retirement savers with defined benefit pensions who want to transfer to a scheme that allows flexible access drawdown.
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The Financial Conduct Authority (FCA) is consulting on new rules that demand anyone with a defined benefit pension takes advice from an IFA before making the switch.
The advisor will have to be a specialist pension transfer advisor recognised by the FCA.
Flexible access rules allow anyone over 55 years old with a defined contribution scheme to draw money from their fund to spend how they like.
The first 25% of any withdrawal is tax free with the balance subject to income tax.
The government believes defined benefit pensions – traditionally public sector and civil service pensions – should not be transferred into other schemes because they come with extra benefits that might be lost.
These benefits include index-linking and widow’s pensions.
In the past, the FCA has gone on record stating that few circumstances could be envisaged where a transfer out of a defined benefit scheme would be advantageous to a retirement saver.
Warnings about bogus advisers – Worldwide
Here are the latest rogue financial firm warnings on the International Organisation of Securities Commissions web site:
- Zulu Trade Inc – Canada
- com – Canada
- TJB Trading Ltd – Poland
- Get Easy – France
- Pacific Emirates Group and Silver Phoenix Investments – France
- Swiss Financial Services SWIIFS – Switzerland
- Iberia Equity Research SL – Spain
- KD Markets.Com Ltd – Spain
- OBinary Corporation – Bankandcapital – BfmMarkets and BoursoMarket – Royal Broker and G.O. Limited – FXGL Capital and HCI Fund – Broker International Bank – Financial Broker – F&C Management Limited and SIA Europe Trade Services – Belgium
- South Pacific Capital Single Member PC – Greece
- Braemar Capital HK – Denmark
- Web binareo.com & tradersking.com – Canada
- Chikara FX – Canada
Warnings about bogus advisers – UK
Here are the latest bogus financial advisers listed on the Financial Conduct Authority (FCA) web site:
- Pathfinder Capital Limited
- Ikon Finance (clone web site)
- Perfect Loans
- Josef Lang Capital Management (clone web site)
- Verrazzano Capital/ Verrazzano UK (clone web site)
- BC Financial Advisors (clone web site)
- CMI Asset Management (clone web site)
- Nano Industry Investments Inc. Limited (NIIIL)
- FTradition/ Forex Tradition (clone web site)
- True Loans (clone web site)
- Ikon Group Inc Ltd (clone web site)
Dealing with an unregulated firm
If you buy shares, save money or invest with an unregulated firm, you lose any protection offered by the Financial Ombudsman and the Financial Services Compensation Scheme. Broadly, you have no independent place to complain if the deal goes wrong and are unlikely to win any compensation.
Checking if a firm is regulated
Go to the Financial Services Register to check if a firm is regulated in the UK.
Reporting a suspected bogus adviser
Find out how to report unauthorised advisers on the FCA web site
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