The FSA has set another precedent which suggests retrospective regulatory action could be looming over the heads of financial advisers yet again, and has done so on the back of research which doesn't reflect the UK population.
Having discovered a difference between the value of a contracted-in and contracted-out pension income, the FSA believes it is duty-bound to investigate whether there are signs of widespread mis-selling for those individuals who were advised to contract out of the state second pensions (S2P) or the former state earnings related pensions scheme (Serps), and take an income based on the assets of a personal pension and a subsequent annuity. There are many issues which could be considered – not least of which the government’s ongoing reform of contracting-out benefits since 1997, and most of ...
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