FCA clarifies UK authorised firms’ responsibilities relating to acceptance of pension transfer referrals from overseas advisers

The FCA is concerned about overseas firms targeting the UK pension benefits of DB scheme members living overseas. It reminds UK firms engaging with overseas firms, or offering advice to scheme members based outside the UK in relation to a possible transfer of their DB benefits, to have regard to their regulatory responsibilities.

On April 27, 2023, the FCA published some online guidance for UK firms engaging with overseas firms or offering transfer advice to scheme members based outside the UK. 

The FCA explains how the overseas advice model works and outlines circumstances where different scenarios involving overseas advice models are likely to result in poor consumer outcomes. It also provides examples on how those in the UK advising on potential benefit transfers can prevent and detect possible harm, and how they can support good consumer outcomes.   

Where the FCA becomes aware that a firm is engaging in practices that are likely to result in significant consumer harm, it will take appropriate action, which may include opening an enforcement investigation.