A majority of advisers see defined benefit transfers as forming a greater part of their business in future – despite regulatory risks being ‘high’.

That was the conclusion of a poll from FundsNetwork, which said that demand was no “flash in the pan”.

Nearly three quarters of the 222 advisers surveyed believed offering DB transfer advice had potential to grow their business but fears around retrospective legislation have lingered.

Some 70% stated that, with valuations rising and more people with DB schemes reaching retirement, this area could form a greater part of advisory businesses in the future.

However, of this group, 64% were worried about retrospective legislation and how this could impact on them in the future.

And these fears appeared to be off-putting for potential new entrants into the market, the authors of the report said. Of the advisers who refer clients requesting DB advice to a qualified person, 74% said they feel this area can only grow. Yet despite this, they have no plan to skill up to offer this advice themselves and nearly three fifths (58%) cite their concerns around changes to future regulation.

Richard Parkin, head of pensions policy at Fidelity International, said: “With valuations riding high, DB schemes have been in the news as people look to explore whether transferring out is a good idea. For advisers, it’s clear they see a real opportunity to help their clients but are understandably concerned about unforeseen problems down the line.

“There is no doubt that transfer will be in some people’s interests and a well-structured advice offering is key to help them look at that. But the regulatory risks around this business are high.

“While the FCA has provided some helpful commentary on this recently we’d like to see more from them on this subject.

“As well as giving advisers more confidence to step in and meet the sharp increase in demand for this service, a clearer regulatory position could also help reduce professional indemnity costs for advisers which are a significant impediment to many being able to offer advice at affordable levels.”