The Financial Conduct Authority has urged pension providers to improve outcomes for customers in legacy pension products, warning that firms should not allow decades-old financial advice to prevent savers from being moved into better-value arrangements.
Publishing the findings of its Unit-linked pensions and savings: Multi-firm review of Consumer Duty price and value practices today (2 July), the regulator said that while "many unit-linked products deliver fair value to customers", it found "some customers holding legacy products were receiving poorer value than those in newer products". According to the FCA, this is often the result of "older product designs, multiple layers of charges and limitations in firms' data", leaving customers paying more while receiving lower investment returns and fewer service features. The regulator als...
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