Warning new GPP rules could create barriers to saving

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FSA plans to include group personal pensions (GPPs) in existing rules regarding pensions advice could create barriers to saving and additional costs to employers, industry figures say.

The regulator made the proposals to mitigate the risk of poor advice being given on workplace pension opt-outs in order to protect people joining pension schemes under auto-enrolment. Rules around additional contributions, which say advisers must consider arrangements within an existing workplace scheme before recommending alternatives, may also be extended to cover GPPs to protect new savers against churning. The response to the consultation from the industry has been broadly positive but some still have reservations about the implications for advisers and employers.  Ian Naismith...

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