Pension cost inquiry to make providers ‘sweat’
British Steel pension scandal looms large, as opaque fees and charges slammed
British Steel pension scandal looms large, as opaque fees and charges slammed
As the Trump cavalcade roars across Britain, the UK government has quietly announced that a planned ban on pensions cold calling has been further delayed.
Powers that would allow the UK’s pensions regulator to give unlimited fines and criminally prosecute reckless behaviour in relation to defined benefit (DB) pension schemes are being considered in a government consultation paper.
Easing the advice requirements for transfers of guaranteed pensions to overseas schemes “could have been a recipe for disaster”, AJ Bell senior analyst Tom Selby said of the UK Government’s decision not to scrap the requirement to take financial advice.
The UK Government is planning to “swiftly” introduce a pension cold-calling ban, but has come up short on setting an exact date, as industry commentators have questioned how effective a ban will be in stopping criminals.
The Financial Conduct Authority has contacted 109 firms connected to British Steel Pension Scheme (BSPS) transfers and requested further information from 66 of them, the regulator has confirmed.
The UK’s Department for Work and Pensions has confirmed that the auto-enrolment age will be lowered to 18-years-old, a move that could see some savers £50,000 better off after 40 years.
Providers of recognised overseas pension schemes (Rops) have voiced concerns over the UK’s plan to scrap the advice safeguard for expats, with some arguing that the move may create a “consumer protection gap”.
The UK’s Financial Conduct Authority (FCA) and Department for Work and Pensions are to impose a 1% early exit charge cap on existing personal pensions and occupational schemes from 31 March next year.
The UK’s pension triple-lock will “worsen the economy”, is “heavily skewed” towards baby boomers, and should be scrapped, according to the Commons Work and Pensions Committee.
The UK government’s plans to potentially scrap the current ‘advice safeguard’ on some overseas pension transfers has met with a mixed response from the financial services industry, with some experts welcoming the move while others believe it will put consumers at risk of being targeted by fraudsters.
The UK’s Department for Work and Pensions (DWP) is considering whether to scrap the ‘advice safeguard’ for expats, which requires individuals to consult an FCA-regulated adviser before they can transfer their defined benefit (DB) pension savings into an overseas pension scheme.