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UK financial regulators have imposed the first fine on advisors who have described their retirement savings transfer recommendations as “seriously incompetent.” Members of the UK Steel Pension System..
The Financial Conduct Authority gave 1.3 million advice to 422 customers, including 183 BSPS steel worker members, to Geoffrey Edward Armin, a Derbyshire-based retirement pension planning service (RPPS), on Monday. Announced that it has imposed a pound fine.
Anyone who is willing to accept a lump sum cash payment due to changes in pension rules in 2015 Transfer a defined benefit (DB) pot If another personal pension is worth more than £ 30,000, you should seek advice from a pension transfer specialist.
Given the valuable benefits offered by DB pensions, such as guaranteed retirement income, rising annual inflation, and pensions for surviving spouses or citizen partners, authorities say companies are the best for their customers. We believe that transfer should only be recommended if it can be clearly stated. interest.
In advising his customer, FCA said Armin was unable to obtain the information needed to assess whether the transfer was suitable for the customer. It is also said to have “almost ignored” important information such as the client’s financial situation and retirement income needs.
According to the FCA, Armin often notified customers only after migrating from the scheme about the valuable benefits of DB annuities.
The FCA said in a formal notice of the ruling that it “damaged many customers, some of whom were vulnerable due to age and financial situation.” “Mr. Armin was terribly incompetent in advising his customers.”
Armin is appealing the decision of the FCA’s senior referee.
183 steel workers at BSPS were looking for Transfer advice According to the FCA ruling, it is worth £ 74m. In addition, 174 BSPS clients transferred their pensions after being advised by Armin, RPPS’s only director and pension transfer specialist.
The FCA has not stated how many of its 422 customers acted on Armin’s advice, but the currently liquidating RPPS received a £ 2.2m fee for all of its advice. 55% said Armin and his company, the regulator.
Poor pension advice claims related to the Armin case could exceed £ 20 million, based on FCA’s 2017 average bailout estimate for poor DB pension advice of around £ 58,000.
BSPS members were terribly disappointed, said Alastair Rush, financial adviser on behalf of many steel workers, for poor transfer advice.
Rush, founder and managing director of Echelon Wealthcare, said:
“They don’t know what they don’t know. Those who trusted him [Armin] You will incur losses well in excess of the maximum financial services compensation scheme of £ 85,000. “
From 2017 to 2018, approximately 7,700 members of BSPS received advice on moving to a personal pension. In almost half of the cases reviewed by the FCA, this advice seemed inappropriate.
“The proceedings highlight the urgent need for the FCA to set up an industry-wide relief system for steel workers who lack advice on pension transfers,” said a member of Blaenau Gwent, Wales. Labor Party lawmaker Nick Smith, who covers thousands of former BSPS members, said.
The FCA’s senior referee will determine, if any, what appropriate action the FCA will take in the Armin case.
Armin did not respond to a request for comment.
UK regulator fines ‘incompetent’ adviser £1.3m over steel pensions Source link UK regulator fines ‘incompetent’ adviser £1.3m over steel pensions