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The FSA needs to examine the length of time insurance companies take to transfer clients' pension annuities to other providers, according to a senior IFA.

The Association of British Insurer's guidelines suggest a two week maximum for transfers once the firm has all the relevant paperwork and encourage them to pay interest on any late money, however, advisers are claiming firms are taking longer.

James Jones-Tinsley, an adviser for Pearson Jones PLC, accused providers of "clouding" the annuities market with "unjoined-up bureaucracy" to put customers off changing.

He said: "The providers could easily do it far quicker, but I have had clients and known colleagues who have had clients who end up waiting four or five weeks. The best thing to do is fine them for not transferring money in a reasonable period of time and it is something that has to be cracked.

"Customers want to transfer because they are offering such poor annuity rates, but the providers are taking an age and customers are being put off by this. One point is that every annuity provider has their own forms set out in a different way, even though they are supposed to be working towards the same end.

"There is no reason whatsoever why they cannot get together round a table and come up with a single form betweeen them. That would go some way towards making the process less bureaucratic and quicker."

ABI guidance calles on providers to "pay out benefits with the minimum of bureaucracy/delay" and "aim to set up annuity and start payments on the selected retirement date". Where the payment is late companies are to "consider paying interest".

An FSA spokesman said: "Once a customer has opted for a transfer then our rules do require it to be done speedily and in a timely fashion.

"If there is a firm who we have identified an issue with, that is not following that requirement, then that is something that we would look into and take action with accordingly."

A spokesman for the ABI said: "These are guidelines, we are not a regulator. We would expect that the interest be paid but we don't have any powers to punish them."