LONDON, June 21 (Reuters) - Britain’s markets watchdog has proposed stricter rules on advice to customers who want to cash in their defined benefit pension plans.
The UK government introduced “pension freedoms” in 2015, allowing people to cash in their pension pots, or transfer the money into alternative investments.
The Financial Conduct Authority said on Wednesday the proposed changes include requiring transfer advice to be provided as a personal recommendation, and replacing the current transfer value analysis with a comparison to show the value of the benefits being given up.
“Our new approach should better equip advisers to give the right advice so that consumers make well-informed decisions,” FCA executive director of strategy and competition, Christopher Woolard, said in a statement.
Reporting by Huw Jones, editing by Carolyn Cohn