FSA fines Regency over income withdrawal advice

Income withdrawal allows people to take a tax-free lump sum from their pension pot and leave the rest invested to provide an income, which is risky because people can end up with less income than expected in retirement. The FSA says the impact of this is potentially greater for those with small pension pots and therefore income withdrawal is only suitable for a limited number of people. Between January 2003 and March 2006, Regency failed to record enough information about consumers to justify recommending income withdrawal and therefore could not demonstrate the advice was suitable. It...