What are introducers?
Introducers promote pension products such as SIPPs and Final Salary Pension Transfers to members of the public before pairing them with a financial adviser or provider who handles the investments. Introducers are rarely regulated by the Financial Conduct Authority.
Are introducers known by another name?
Lead generators, financial agents, wealth managers, introducers go by many names. An introducer can be a sole trader or part of a larger firm.
What do introducers charge?
Introducers typically seek business for regulated financial advisers in exchange for a fee or commission if the person they have introduced goes on to become a client.
How do introducers find you and what do they say?
A call, email or social media message, coming out of the blue, is usually how an introducer makes contact with members of the public. Typically, they offer a free pension review and provide details of how their investments can achieve greater gains elsewhere.
Why is this a problem?
According to The Financial Conduct Authority, introducers often fail to act in the best interests of the client, failing to carry out appropriate fact-finding or exposing them to risks they are unsuited to.
The FCA is “highly concerned” by the amount of influence introducers have on financial advisers. All decisions and management regarding a pension should be left with a regulated financial adviser and their client.
Who is liable for a mis-sale, the introducer or financial adviser?
Financial advisers are almost invariably liable for any mis-sale caused by an introducer. They are responsible for ensuring all FCA regulations are adhered to. In thousands of cases a year, this isn’t the case. It’s one of the main reasons the pension mis-selling scandal is so huge.