Final rules from the Financial Services Authority (FSA) on pension transfers mean it will be tougher for advisers to recommend moving cash from defined benefit (DB) to personal pensions.
The watchdog said it was likely the number of transfers would drop as a result of the move. The rules and guidance, published today, follow a consultation designed to strengthen the protection for members of DB schemes who are considering moving their retirement savings into personal pensions. The FSA said the changes were designed to deal with concerns that "in most cases a pension transfer is not in the best interest of pension scheme members". The FSA said it was raising the standards on the assumptions used when a pension transfer value analysis (TVA) is made. This will make it...
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