Nucleus: Regulatory framework must be fit for purpose

Following publication of the FCA’s proposed changes to the DB transfers advice space, product technical manager at Nucleus Rachel Vahey comments on what this means for investors:
“Defined benefit transfers are quickly edging to the top of the financial planning agenda, thanks to a heady mix of high transfer values and consumer desire for flexibility. The current regulatory framework is past its sell-by date, and we welcome FCA’s consultation on how to update it.
“Whatever emerges needs to be a robust system designed for the long-term, not just in response to these extraordinary times. Good financial planning is at the heart of defined benefit transfer advice, but the regulatory framework also needs to be fit for purpose. Updating the transfer value analysis (TVAS) requirements is a necessity to bring it into the 21st century and we welcome the fact the FCA is looking to replace this with something more focussed.
“Every person’s circumstances are unique and advice has to be tailored for the individual, so it is good to see support for the move to make DB transfer advice a personal recommendation. Regulated advice should reflect the myriad of options shaped by a person’s objectives and the current financial planning environment.”