The Financial Conduct Authority has confirmed its finalised Defined Benefit (DB) transfer guidance for financial advisers.

The finalised guidance on advising on DB transfers is largely unchanged from the draft guidance published in June.

The FCA also confirmed its view that it is in the best interest of most consumers to stay in their DB pension.

The regulator said that where an individual seeks advice to transfer, it expects firms to give advice that is suitable and appropriate for their needs and situation and this finalised guidance will help firms to identify any weaknesses in their existing processes so that they can put into place an appropriate framework for managing and delivering suitable advice.

The guidance from the regulator highlights the inconsistency of record keeping by advisers and provides guidance on the processes advisers may want to put in place so they can establish whether the DB advice is suitable or not.

The guidance can be downloaded from the FCA website 

Andrew Tully, technical director at Canada Life, welcomed the guidance: “Today’s finalised guidance gives advisers a clear steer what the FCA is expecting around defined benefit transfers. While many people will be better off remaining in their defined benefit scheme there are some specific situations, such as those in ill-health or heavily in debt, where a transfer will be the best outcome.

“This guidance will hopefully help ensure we continue to have a functioning DB transfer market while reducing the instances of poor outcomes for consumers.”