FCA urged to ban 'unjustified' pension exit charges for all savers

Rules due to come into force next year

clock • 2 min read

The regulator should completely ban all pension early exit charges to prevent any saver being penalised for taking advantage of the freedom and choice reforms, Hargreaves Lansdown has said.

The firm said even the 1% cap due to be put in place for leaving existing schemes should be brought down to nothing. It said exit charges were not unjustified following the pension freedom reforms. The Financial Conduct Authority's (FCA) consultation on the issue is due to close on 18 August.  The regulator is expected to: • Propose a complete ban on early exit penalties for new pension contracts • Allow penalties of up to 1% on existing pension arrangements Hargreaves Lansdown said about 200,000 investors are expected to be affected over the next four years and reducing the exi...

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

Join

 

Already a Professional Adviser member?

Login

More on Pensions

The AI ship has sailed and pension providers are still sitting on the shore

The AI ship has sailed and pension providers are still sitting on the shore

'The AI interface has arrived'

Jonathan Lister Parsons
clock 13 August 2026 • 6 min read
CRM integration project highlights AI-powered innovation potential

CRM integration project highlights AI-powered innovation potential

Project reflects a broader shift in adviser technology

Joe Power
clock 04 August 2026 • 3 min read
Pensions minister Torsten Bell: 'Together, we are going to finish the job'

Pensions minister Torsten Bell: 'Together, we are going to finish the job'

Bell was reappointed to the pensions minister role in the government reshuffle

Holly Roach
clock 27 July 2026 • 1 min read