Data on Defined Benefits pension transfer activities

Reference Case Number: FOI8786

Freedom of Information: Right to know request:

The questions below pertain to FCA data on DB pension transfer activity. On the FCA website[1] it states that from April 2021 firms will be required to submit 6 monthly data on their DB transfer activities. The latest data published there is for the period October 2018-March 2020. Please can you tell me:

For any 6-month periods after March 2020, for the total volume of clients provided with advice and guidance what was:

The conversion Triage %
The conversion Rate %
The number of clients seeking advice
The number advised to transfer
The number advised not to transfer
The percentage of firms which advised 75% or more of clients to transfer

If the above information could be provided in the same data table format as it is listed in Figure 1 on the FCA website[1], then that would be much appreciated.

How many firms have received a sanction or penalty from the FCA in following time periods for improper DB transfer advice and if fines were issued, what was the total value of the fines issued?

During 2018
During 2019
During 2020
During 2021

Of those clients that were charged contingently for DB transfer advice, what percentage of these were due to the exception where a consumer is more likely to benefit from advice and may be unable to afford non-contingent advice charges?

FCA response:

Question 1

Category	a) Conversion Triage %	b) Conversion Rate %	c) Clients seeking advice	d) Advised to transfer	e) Advised not to transfer	f) Percentage of firms which advised 75% or more of clients to transfer	g) Percentage of firms which advised 75% or more of clients to transfer, allowing for triage
Apr 2020 - Sept 2020	47	62	7,430	13,898	8,208	53	31
Oct 2020 - Mar 2021	34	63	10,408	9,703	5,809	59	28
Apr 2021 - Sept 2021	35	63	7,961	10,452	6,170	62	31

As part of our ongoing work on Defined Benefit (DB) transfer advice, on 5 June 2020 we set out a package of measures to improve standards and build on the work we have previously done. This included a Guidance Consultation[2] for those advising on DB transfers to help advisers who want to provide good quality advice, an 'Advice Checker[3]' for consumers, and a package of policy changes[4], which included setting up new data collections in order to improve our ability to supervise the sector. From April 2021, firms are required to submit 6 monthly data returns on Defined Benefit (DB) pension transfer activity by completing the RMA-M. Data collected on a firm’s DB transfer activity prior to the introduction of the RMA-M was on an ad-hoc basis. The information we have provided for the first 6-month period (Apr 2020-Sept 2020) has been taken from data collected on an ad-hoc basis, whilst the subsequent two periods from Oct 2020-Mar 2021 and Apr 2021-Sept 2021 are based on data collected from the RMA-M returns.

Question 2

2020 – 1 case with a financial penalty - £107,200 – LJ Financial Planning Limited

2021 – 1 case with a financial penalty - £1,284,523 – Geoffrey Armin

Final Notice for LJ: https://www.fca.org.uk/publication/final-notices/lj-financial-planning-ltd-2020.pdf[5]

Decision Notice for Armin https://www.fca.org.uk/publication/decision-notices/geoffrey-edward-armin-decision-notice-2021.pdf[6]

Please note that Armin is subject to a Tribunal reference which is ongoing.

Question 3

We can confirm that we do not hold this information at the level of detail you have requested.

Date of Release: 28/02/2022

Data on Defined Benefits pension transfer activities - February 2022

Freedom of Information: Right to know request:

FCA response:

More information

Data