Osborne to Set Rules Capping U.K. Pension Exit Chargesby
Cap on exit fees to be introduced following consultation
FCA to set level of pension exit fees and consult further
U.K. Chancellor of the Exchequer George Osborne will introduce new rules capping the charges imposed on those who want to access their pension funds early.
The Financial Conduct Authority will be responsible for setting the level of the cap and will hold a public consultation on the issue, the Treasury said in a statement released via the Regulatory News Service on Tuesday.
The government opened a consultation last July to consider possible barriers to people switching their pensions, including exit charges, after scrapping the need to buy annuities in the biggest shakeup to the pensions industry in almost a century.
"The government isn’t prepared to stand by and watch people being ripped off," Osborne told lawmakers in Parliament Tuesday. "We’re determined that people who’ve done the right thing, saved responsibly, are able to access their pensions fairly."