The Consulting Consortium launches free pensions transfer review

The Consulting Consortium (TCC) has launched a free high level review of individual firms pensions transfer business in response to the latest FSA findings on the pension switching report.

The FSA report reviewed the quality of advice given to consumers to switch into a personal pension or self-invested personal pension (SIPP). Findings highlighted some stark warnings for adviser firms after the regulator reported that it had found evidence of unsuitable advice being given in a significant proportion of cases. It also warned that some providers had been overstating returns and understating charges.

The FSA assessed 500 cases from a diverse range of 30 firms active in this market, whose total activity represented about 10% of all pension switching sales since the pension tax regime changes on 6 April 2006. Results taken from the FSA report included:

• In a quarter of the firms visited, one third or more of the cases sampled were assessed as comprising unsuitable advice
• In a quarter of firms, no cases sampled were assessed as comprising unsuitable advice
• Over the entire sample of 500 cases, unsuitable advice was assessed in 16% of these cases

The free pension business transfer review administered by The Consulting Consortium (TCC) will help give a fair indication as to where an individual firm would rank in the FSA’s survey therefore highlighting any potential deficiencies. This review will assist firms in ensuring that they possess a firm understanding of the effectiveness of their current procedures in the eyes of the regulator.

The review offer will run until the end of January 2009 and interested parties should contact Jon Sinclair on 01274 715861 or JSinclair@theconsultingconsortium.com.

Joanne Smith, Managing Director at The Consulting Consortium, said:

“This review has highlighted just how vital it is that firms are fully aware of exactly where they stand when assessed against the FSA’s standards of advice. It is obvious that the FSA has taken a dim view on these findings and the likelihood is that it will look increasingly closely at this sector of the market. This free offering provided by TCC provides firms with the perfect opportunity to assess their current position before the FSA considers closely assessing firm’s compliance in this area.

“A number of firms will be subject to enforcement investigation as a result of significant failings identified during the review. All firms with deficiencies found during the survey will be expected to review their other transfer cases and pro-actively take remedial action to ensure that clients are not disadvantaged. There have certainly been some shortcomings on pension transfers and we are urging firms to implement plans to ensure measures are put in place to combat these.”

For full information on The Consulting Consortium, firms should visit: www.theconsultingconsortium.com

For further information please contact:
The Consulting Consortium; Tel: 0207 645 8808; Email: info@theconsultingconsortium.com
Scott Philipson, White Dragon Communications Ltd, Mobile: 07786 226520; Email: scott@whitedragoncomms.co.uk


Notes to editors
Founded in 2000, The Consulting Consortium (TCC) is a regulatory consultancy which provides advice and guidance on activities regulated by the Financial Services Authority and, in particular, the application of the FSA's regime on financial services products.

With offices in London and Yorkshire, The Consulting Consortium's consultants offer innovative, fully FSA compliant and long term solutions to client's individual regulatory scenarios. The Consulting Consortium's sister company, TCC Recruit, specialises in recruiting staff for regulatory compliance, risk and corporate governance positions.

The Consulting Consortium is quality conscious at all times and offers clients a quality of service which is unsurpassed in the regulatory industry.
The consultant database is hand picked and managed by The Consulting Consortium’s own full time resource. This allows The Consulting Consortium to be highly responsive to clients needs whilst offering exceptional service and value for money.

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