Source · Select Committees · Public Accounts Committee
Recommendation 11
11
The FCA implemented ineffective regulatory interventions in its initial response to the BSPS case.
Conclusion
The FCA implemented ineffective regulatory interventions in its initial response to the BSPS case. For example, the FCA issued letters to advice firms reminding them of their obligations to provide advice that is in consumers’ best interests, showing its naivety in failing to understand the behaviour and motivations of unscrupulous advisers.33 Similarly, as part of its suitability assessments the FCA allowed 44 firms to withdraw from the market voluntarily, rather than taking enforcement action.34 In doing so, the FCA has failed to distinguish between rogue advisers who targeted BSPS members and isolated instances of bad advice.35
Government Response
Not Addressed
HM Government
Not Addressed
Intervention work carried out by the FCA has also led to 48 firms withdrawing from the defined benefit pension transfer advice market. Interventions made by the FCA have required firms to cease all regulated activities relating to DB pension transfers and have stopped firms providing DB pension transfer advice to BSPS customers.