In a statement to Rolls-Royce, the Financial Conduct Authority has said “where the FCA sees unsuitable advice, or bad practice, it will take action” and that transferring out of a DB scheme was “unlikely to be in the best interests of most consumers”
Another victim of the pandemic, Rolls-Royce announced in May 2020 that it would be cutting 9,000 jobs from its aerospace division and by the following month more than 3,000 workers had already applied for voluntary redundancy.
As expected, this has led to a number of IFAs swarming around employees, encouraging them to transfer out of the Rolls-Royce pension scheme, ‘like bees to a honeypot’.
Alarmed by this surge in pension transfer activity, Rolls-Royce alerted the regulators, the Financial Conduct Authority (FCA), The Pension Regulator (TPR) and the Money and Pensions Service (Maps) who published a joint statement in October last year saying that they had been in talks with Rolls-Royce and its scheme trustees due to the concerns of employees leaving the scheme and potentially losing out financially. The regulator confirmed that transferring out of a DB scheme was “unlikely to be in the best interests of most consumers” and that “where the FCA sees unsuitable advice, or bad practice, it will take action”.
The FCA identified 65 advisers who advised clients to transfer out of the scheme and sent them information requests in order to uncover any bad practice and/or unsuitable advice. It said, “all advisers should be clear on the FCA’s expectations when offering advice to members of the scheme”.
In a statement from a Rolls-Royce spokesperson, it was said that Rolls-Royce strongly supports the FCA’s stance here and urges the regulator to take appropriate action against any advisers not playing by the rules.
The Rolls-Royce Defined Benefit scheme, which closed to members in 2007, has 7,500 active members, 20,000 deferred members and 13,000 pensions that it supports.
Did you or someone you know transfer out of the Rolls-Royce DB scheme? If so, it is important to make a complaint to the regulator now to ensure that if you have lost out financially as a result of poor advice, that you are able to recover what you have lost and do not suffer on retirement. For more information and advice, please call Money and Me Solicitors on 01925 859625 or via email to firstname.lastname@example.org.