MPs tell FCA: Act now on retirement 'second line of defence' or face fresh mis-selling scandal

The Financial Conduct Authority (FCA) must establish a ‘second line of defence' for retirees ahead of pension freedom or the industry faces another major mis-selling scandal, according to MPs.

Members of the Work & Pensions Committee said the FCA should make it mandatory that providers ask detailed questions around suitability before selling at-retirement products. MPs also said the current position - which requires providers to ask if customers have taken advice or guidance - was no-where near good enough. From April next year retirees will have unfettered access to their pension cash, meaning they are free to take as much or as little as they choose, subject to tax. The committee was taking evidence from the FCA and The Pensions Regulator on auto-enrolment and the new pen...