“Treating Customers Fairly lies at the very heart of what the regulator, the Financial Conduct Authority, is trying to achieve and how any financial services provider should operate. Today’s Treasury document is therefore part of an ongoing and welcome process to ensure customers get good service at a fair price,” says Andy Bell, chief executive of AJ Bell. “I suspect the section on fees will grab all the headlines. The Treasury is looking at whether it should impose a fixed cap, a limit that varies according to circumstances or wait for the industry to act and what it mustn’t do is rush the process once more.”
Bell continues: “We are not convinced that a simple percentage-based cap will work well where providers charge fixed fees, as these can often be significantly cheaper than percentage charges on larger pots. For example, no-one wants a situation where providers are forced to switch from low, fixed charges to percentage-based charges that end up being significantly more costly for those with larger funds.”
Notes for Editors
- The Treasury has today released a consultation on pension transfers, with a particular focus on the costs involved, the efficiency of the actual process and the availability of financial advice. The consultation runs until 21 October.
- This follows the release alongside the Budget (8 July) of a Green Paper on possible changes to tax relief on pensions. That consultation runs until 30 September.
- Since the March 2014 Budget, the Government has drawn up a series of pension reforms, many of which came into force from 6 April 2015.