FCA releases proposals for new pension rules
The Financial Conduct Authority has proposed changes to UK pension rules in a bid to address risks and challenges faced by consumers in the new retirement market.
The paper, released on Thursday, lists a number or proposals to ensure that the pensions market works well for consumers.
They include rules to ensure consumers receive timely, relevant and adequate information to encourage them to look at all the options for accessing their pension, as well as rules on the methodology for providing illustrations to members wishing to access their pensions flexibly.
They also have guidance on the type of ongoing information consumers are provided once they start accessing their pension savings, and advice on how existing rules apply to pension reforms, specifically debt collection and debt advice.
There are also proposed restrictions on the promotion and distribution of high risk investments and amendments to definitions of certified ‘high new worth investors’ and ‘restricted investors’.
Christopher Woolard, director of strategy and competition at the FCA, said it’s vital the pensions market works well for consumers.
“Our proposals today are designed to ensure that consumers have access to products and services that are well governed and deliver value for money following the government’s pension reforms.
“We will continue to monitor the market as it evolves following the introduction of the government’s pension reforms to ensure that firms are helping consumers get the best outcome in retirement.”
The FCA is taking submissions on the proposals until 4 January 2015.