A crackdown on final-salary transfers

The ongoing controversy over transfers out of gold-plated final-salary pension schemes is a reminder of the tough balancing act that financial regulators constantly have to manage. For such watchdogs, the line is very fine between protecting consumers and ensuring that excessive red tape doesn’t get in the way of their best interests.

The Financial Conduct Authority (FCA), the UK financial-services regulator, announced last week that it will require financial advisers to give much more exacting guidance on transfers out of final-salary – or defined-benefit (DB) – schemes. On the one hand, this move may protect [...]