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...

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