Nearly a third of firms have told the FCA they always refuse transfers from insistent clients.
Officials said in a report this morning that 30% of all firms it spoke with never accepted such transfers. The figure was slightly lower, at 23%, for the largest 15 companies.
Just 9% of all firms said they always accept transfer from insistent customers, while this was 15% for the biggest businesses. Some 61% of all firms said they did accept them under certain circumstances (62% for top largest 15 firms).
The regulator published these findings this morning as part of a major study on the pension freedoms and key issues surrounding the reforms since implementation.
Two main reasons were given by firms for refusing to accept transfers from insistent customers, the FCA reported.
The first was where the transfer concerned a DB scheme or one with other safeguarded benefits - where the FCA said it would expect most insistent customer situations to arise.
The second was where a financial adviser does not facilitate the transfer.

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Other circumstances mentioned by firms included where:

• The investment type concerned was deemed unsuitable (in Sipps).
• Due diligence conflicts were present.
• The transfer is from an occupational scheme.
• Where the financial adviser could not show adherence to FCA guidance.

Firms were asked by the FCA whether there was any variance of their approach to insistent customers by type of customer or the type of option the consumer was seeking to access. Nearly all firms stated that there was no variance in their approach, but of the firms that did vary their approach, the reasons cited were:

• The firm takes a case-by-case approach to the issue, for example considering the broader suitability requirements.
• As a result of the minimum fund requirements of the firm, or due to the type of legacy plan held by the consumer.
• Where the transfer was from an occupational scheme – in this regard, responses did not differentiate between DB and DC occupational schemes.

The FCA report stated: “In practice, following up with firms to explore their treatment of insistent clients, it is apparent that most firms that state that they do not accept insistent clients or will only do so in certain circumstances, do not ask advisers whether they are acting on an insistent client basis. If a customer is able to find an adviser willing to act on their behalf, it is likely that providers will accept the transfer.”