Contingent charging – good or bad?

Article by Phil

Contingent charging continues to be in the news. Despite the FCA considering that contingent charging doesn’t actually lead to bad practice, the Work and Pensions Select Committee think otherwise and are threatening legislation to ban the practice, Under contingent charging (in the area of defined benefit pension transfers) clients only pay a fee if the advice is to transfer their pension.
The argument is that this means that it’s only in advisers interests to recommend transfers even if it isn’t in the clients best interests. I understand the argument, but that also means that advisers would deliberately give clients the wrong advice. This is surely counterproductive and would be found out in the long run. Perhaps I am naïve?
However, the Work and Pensions Select Committee might well be missing a counter argument which could create even more consumer detriment. If contingent charging is banned then everyone will have to pay for advice, even if that advice is not to transfer and to leave things as they are. In the current environment these clients tend to get screened out at the initial meeting, but if this is the only way to charge clients then it’s quite e easy to see how lots of individuals could end up paying for advice that they didn’t need.
So as always its never quite black and white.
We offer both contingent and straightforward fee based charging.

The Benefit of Independent Financial Advice Explained

Why taking personalised financial advice is a good idea, both now and in the future.

If you have any questions about Financial Planning please feel free to give us a call on 01282 614444 or drop us an e mail to

Awards and Accreditations

Pension Transfer Gold Standard
Financial Vulnerability Taskforce
VF 23
Vouched For 2022
Vouched For 2021
Vouched For 2020
Vouched For 2019
Vouched For 2018
Vouched For 2017
Vouched For 2016
Vouched For 2015
Vouched For 2014

Christina is a very approachable young woman and is always ready to answer any questions. I would not hesitate to recommend her to friends.

Mrs V

Christina is thorough and she explains matters in a clear manner. Time is always given for questions to be asked and I have never felt under pressure to buy any particular products.

Mrs D

I will be recommending Adele to act for colleagues I work with, who will need the same advice as I have received in the future.

Mr M