Financial Conduct Authority urges thousands to seek compensation over pension transfers

Letters sent to clients of IFAs who have since gone out of business and no longer trading.

Thousands of people are receiving letters from the UK’s City regulator urging them to lodge claims for compensation for being wrongly advised to transfer out of their guaranteed “final salary” pensions. The Financial Conduct Authority has written to 2,677 people who transferred from defined benefit pensions after 2015, with letters warning them of “action needed”. FCA said the recommendation to transfer made by the individual’s authorised independent financial adviser (IFA) — now in liquidation — was unsuitable for them, and they “could be owed money”. “We encourage you to act,” said the letter, headlined “This is not a marketing exercise”. “If you do nothing you may end up with less money during your retirement,” it said. The recipient was also told they had “limited time” to complain to the Financial Services Compensation Scheme, which can pay compensation for poor advice of up to £85,000.

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Read more from our source The FT Advisor here