FCA proposes 1% cap on pension freedom exit charges

Will ban fees on new contracts

Carmen Reichman
clock • 2 min read

The Financial Conduct Authority (FCA) has proposed to ban early exit charges for new pension freedom contracts and cap existing ones at 1% of the value of the pot.

In a consultation paper out on 26 May, the regulator said the new cap will affect personal and stakeholder pensions - both individual and workplace - and self-invested personal pensions. The Dep...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Law and Regulation

FCA and TPR urge industry to take proactive steps now to deliver guided retirement

FCA and TPR urge industry to take proactive steps now to deliver guided retirement

Industry must also develop ‘much deeper understanding’ of member needs

Jonathan Stapleton
clock 26 August 2025 • 2 min read
PAG urges MPs to back bill amendment to index pre-97 FAS pension rights

PAG urges MPs to back bill amendment to index pre-97 FAS pension rights

Campaign group says amendment would address ‘major social injustice’

Jonathan Stapleton
clock 26 August 2025 • 2 min read
HMRC increases evidence requirements for higher or additional rate relief claims

HMRC increases evidence requirements for higher or additional rate relief claims

Evidence may be required where it would not previously have been requested

Jonathan Stapleton
clock 22 August 2025 • 1 min read
Trustpilot