Probe launched around Rolls-Royce pension transfers and ‘poor advice’

Business

Watchdogs are investigating whether a slew of departing RollsRoyce staff have received shoddy advice around their pensions

Watchdogs are investigating whether a slew of departing RollsRoyce staff who want to transfer out of its pension scheme have received shoddy advice.

The Financial Conduct Authority (FCA), The Pensions Regulator and the Pensions Advisory Service are quizzing financial advisers about the guidance they have given to employees who have taken voluntary redundancy.

The engineer is cutting 9,000 jobs in a restructuring programme to manage the hit it has taken from Covid. Rolls said last week it was struggling to process a ‘very high number of transfer payment requests’ regarding pensions and claimed many had arrived with missing information and unreadable documents.

It alerted the FCA that the restructuring was attracting attention from advisers and ‘strongly supports’ the investigation. The regulators have threatened action if they find ‘evidence of poor advice’.

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