Higher price cap ups mis-selling risk says CA

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A risk of "massive mis-selling" could be on the cards if the government decides to increase the charge for stakeholder pensions, warns the Consumers' Association.

Furthermore, it may also widen the UK's current savings gap rather than shrink it as previously been suggested by the industry. Latest CA research reveals increasing the cap will further deepen consumers' mistrust in the financial services industry. This would, in turn, deter more people from investing in a pension as well as increase the risk of mis-selling, the Association says. The research - published one month ahead of the government's announcement whether it will raise the charge or not - also indicates 72% of consumers would choose to invest in a savings account rather than a s...

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