The Financial Conduct Authority (FCA) has extended its risk warnings on the Lifetime ISA, due to be launched to consumers at the start of the new tax year, following a consultation with the industry.
In a paper out on 7 February the regulator said risk warnings on losses of employer pension contributions would be widened out to personal pensions. Previously such warnings were earmarked for workplace pensions but under the new rules, firms will need to warn investors of the losses they might incur from switching away from a personal pension scheme, where an employer is matching their contributions, to a LISA. The warnings will also need to include an explanation of how a switch to LISA could impact means-tested state benefits. However, the regulator stopped short of mandating th...
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