Aviva backs pension transfer advice charges ban
According to the Financial Times, Mr Briggs is particularly concerned that when contingent charging is in place, advisors only receive a payment if a transfer is made, which incentivises them to recommend such a move even if it is not in the interests of the customer. This could, he warned, further erode public trust in the financial services sector.
Instead, he said, a charge should be made for the advice, whether this involves a transfer or not. Mr Briggs concluded, "This will be a powerful way of making sure that only those clients that are genuinely interested [in the advice] engage with the process, and that would be an extra guard against any potential rogue advisers in this space."