Contract out pension policies not mis-sold - FSA

An investigation by the regulator was prompted by concerns people who were unsuitable to contract out due to their age were being advised to do so to generate sales for advisers and providers. Pension providers set what were known as pivotal ages, beyond which contracting out of the State Second Pension was deemed generally unsuitable. The enquiry found around 120,000 policies, 1.5pc of around 8m alternatively secured pensions sold since 1988 involved above ‘pivotal age’ sales. However, the FSA said that even in these circumstances, while some policies may have been mis-sold, there...