FCA gives retirees additional protection ahead of pensions freedom

Pension providers must ask clients a set of key questions before they access their pension pot and should also highlight the benefits of regulated advice, the Financial Conduct Authority (FCA) has said.

The regulator set out its new rules today in a Dear CEO letter to all pension provider chief executives. It said the rules, called for by both MPs and providers and dubbed the 'second line of defence', will give retirees additional protection when pensions freedom comes into effect from April. Providers have been told to introduce additional protection when people want to access their defined contribution (DC) pensions. They will have to ask consumers about their circumstances, including health and lifestyle choices or marital status. Providers will be required to give relevant ris...