DB pension freedom rights 'eroded' by Dear CEO letter

FCA contacted firms 22 March

Hannah Godfrey
clock • 3 min read

The recent 'Dear CEO' letter sent by the FCA to pension providers could mean pension freedoms for defined benefit (DB) scheme members are "being eroded", one SIPP provider has warned.

Last Friday (22 March) the Financial Conduct Authority (FCA) sent out a letter addressed to the CEOs of major pension providers. The regulator said the letter was the result of a review into pension product providers that sought to identify the key drivers of harm with respect to DB-to-DC (defined contribution) transfers. The letter said: "We expect you to have appropriate measures in place to ensure that products are being recommended responsibly and appropriately, in accordance with the treating customers fairly principle." In response to the letter, investment manager Intelligen...

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