FCA introduces additional protection for consumers ahead of pension freedoms
29 January 2015
The Financial Conduct Authority will introduce additional protection for those accessing their defined contribution pension pots from April 2015.
The FCA has written to the Chief Executive Officers of pension providers to outline plans to introduce additional protection for those accessing their defined contribution pension pot from April 2015. Under the new additional protection rules firms will be required to ask consumers about key aspects of the circumstances that relate to the decision they are making about their pension pot. These include issues such as health and lifestyle choices or marital status.
Providers will be required to give relevant risk warnings, such as warning of the tax implications of their decisions, in response to answers from consumers.
The rules will be introduced on a temporary basis from 6 April 2015 without consultation to provide additional protection for consumers.
Firms will be required to deliver these messages in a direct and simple language which will be set out when the new rules are published.
Firms must also further highlight the availability of the Government’s new Pension Wise scheme or regulated advice.
Christopher Woolard, director of strategy and competition at the FCA said:
"The decisions consumers make about what to do with their pension pot are important and in some instances these choices are irreversible. We want to make sure that people have the help they need to make those choices."
Pension Tracing Service expansion
5 February 2015
The free government service that helps people find lost pension cash is undergoing a major expansion , ahead of April’s pension freedoms.
The Newcastle-based Pension Tracing Service (PTS) will triple its number of staff – taking the total headcount to 49 – ahead of a rising number of calls from people seeking help to find lost pension pots. Last year the service was contacted a record 145,000 times – double the amount in 2010 – and in an impressive 87% of cases, staff successfully managed to put customers back in touch with their lost pension provider. With 98% of enquiries from members of the public dealt with in just 4 days, the government is determined to continue its excellent track record and do everything it can to ensure people have access to all of their money.
Minister for Pensions Steve Webb said:
“With people having an average of 11 different jobs during the course of their working lives, it can be very easy to lose track of pensions they may have built up with previous employers.
CIPP Policy News Journal
08/04/2015, Page 419 of 521
Made with FlippingBook - Online magazine maker