Pensions - DB Transfer

Unsuitable advice to transfer out of defined benefit scheme

Mandatory ADR
Max award: £445,000 (from 1 Apr 2025)
8 weeks firm; FOS 6 months; FSCS no time limit (for insolvent firm)
Uphold rate: 34% (FOS 2024/25)

Key Legislation

Financial Services and Markets Act 2000; FCA COBS — COBS 19.1 (starting assumption DB inappropriate); COBS 19.2 (personal recommendation required > £30k); COBS 9A

Complaint Route: Financial Ombudsman Service

Type: Ombudsman (binding on firm)

Max award: £445,000

Uphold rate: 34%

Average resolution: 180 days

Pre-conditions: Complain to firm first; firm has 8 weeks to resolve; then refer to FOS within 6 months of final response

Visit FOS website

Companies in This Sector

IFAs involved in BSPS transfer advicevarious regulated financial advisers

Annual complaint volume: 305,726 (FOS 2024/25 total)

Note: Compensation range: Restoration to DB equivalent position + investment growth; significant awards

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Regulator

Financial Conduct Authority (FCA)

Website

Coverage

Tier 1 — Financial (FOS expertise)