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

Join now

 

Already a Professional Pensions
member?

Login

More on Law and Regulation

PPI: The opportunity for joint working to improve retirement outcomes

PPI: The opportunity for joint working to improve retirement outcomes

Mariana Garcia Requejo says greater alignment will be integral to creating a coherent decumulation market

Mariana Garcia Requejo
clock 20 May 2025 • 4 min read
How TPR is using regulatory intervention reports

How TPR is using regulatory intervention reports

Chris Edwards-Earl takes a look at the RIR for the MGN Pension Scheme

Chris Edwards-Earl
clock 16 May 2025 • 3 min read
Government launches LGPS consultation proposing reforms to improve fairness

Government launches LGPS consultation proposing reforms to improve fairness

Government says reforms will bring ‘fairness’ and ‘equality’ to workers in the LGPS

Martin Richmond
clock 15 May 2025 • 6 min read
Trustpilot