Generic advice will not be enough to stop people making "incorrect choices" on personal accounts, says the Financial Services Authority.
In its 12-page response to the consultation on the pensions white paper, the FSA says the regulatory framework around personal accounts will depend on whether they are designated as occupational or personal pensions and the final model chosen. Expressing no preference on a model type, the FSA says there will be suitability risks for both types of models, particularly as auto-enrolment could catch people who the accounts would not be suitable for, such as those with high interest debt, or the terminally-ill. But it warns while it should be possible to put in place information to help peo...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes