In a joint statement issued on 28 October 2020, the Financial Conduct Authority (“FCA”), The Pensions Regulator (“TPR”) and The Money and Pensions Service (“Maps”), have confirmed that they have been liaising with Rolls Royce after a hike in the number of defined benefit pension transfers being made following the company’s restructuring, in which thousands of redundancies were made as a result of the impact of the Covid-19 pandemic on their industry.
Transferring out of a defined benefit pension scheme, is unlikely to be in the best interests of most consumers. As a result, it is an area heavily regulated by the FCA and there are hefty expectations placed upon firms of independent financial advisers, to ensure that they advise their clients of the pros and cons of a transfer, before the transfer is able to go ahead.
Consequently, it is being reported that the FCA has issued 65 data subject access requests (“DSARs”) to the firms that have been advising on the Rolls Royce transfers, to investigate why so many consumers have transferred their Rolls Royce pensions. Read more about defined benefit transfers here.
It has been made clear that where the FCA unearths evidence of poor advice or unsuitable practice, action will be taken against the firms involved. However, whilst the FCA may act against firms it will be up to individual pension holders to seek legal advice on whether they may be entitled to compensation as a result of unsuitable advice.