Millions Urged to Check One Pension Detail After Watchdog Issues Stark Warning
The watchdog said some legacy plans charge more than newer versions and wants firms to identify poor-value cases across the market.
- The Financial Conduct Authority is urging millions of savers to review older, "legacy" pension plans, warning that some customers pay higher charges for poorer products than those in newer versions. This affects unit-linked non-workplace pensions holding more than £1 trillion.
- Some savers remain trapped in "legacy" pension products because of outdated charging structures and aging systems, the regulator said. Firms must ensure these products deliver fair value under the Consumer Duty framework.
- Charlotte Clark, director of cross-cutting policy and strategy at The FCA, said: "Consumers in older products should not be left behind, and the good news is that some firms are already showing it doesn't have to be this way." Some firms are capping charges.
- The regulator expects firms to access data needed to monitor outcomes and show fair value on an ongoing basis. Firms with limited business should also apply these good practices across their product ranges.
- Experts recommend checking annual charges on older pensions and whether a newer version of the same product offers lower fees. Savers should also ask their provider to explain the value they are receiving from their current plan.
23 Articles
23 Articles
The Independent
Belfast TelegraphFirms must do more for customers in older pensions, says FCA
Under the Consumer Duty, firms should be able to show that products deliver fair value.
FCA Warns Firms on Legacy Pension Products
Quick update from the FCA on pensions; The Financial Conduct Authority (FCA) has found that people holding legacy pension products, now closed to new savers, could be receiving poorer value than those in newer ones. The regulator identified some good [...] The post FCA Warns Firms on Legacy Pension Products appeared first on .
FCA sets sights on ‘poor value’ closed legacy pension funds
The FCA has found that people holding legacy pension products, now closed to new savers, could be receiving poorer value than those in newer ones. The UK financial services regulator said in statement that while it identified some good practices, some complex charging structures, older product design and weakness in firms' data meant some pension savers are not getting as much value as they could. The FCA said that some unit-linked non-workpla…
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