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FCA to set new pension exit charges caps.
The Financial Conduct Authority (FCA) will be required to cap excessive early exit charges for those eligible to access their pension savings under the new pension freedoms. Chancellor of the Exchequer George Osborne made the announcement during Treasury oral questions in the House of Commons on 19 January.
The new duty introduced through legislation will form part of the response to the government’s pension transfers and exit charges consultation which closed last October.
The FCA will be responsible for setting the level of the cap and will consult fully on this.
Tom McPhail head of retirement policy at Hargreaves Lansdown said: “Investors who are looking to take advantage of the freedoms but who are currently facing exit penalties may want to hold back now in...
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