Christmas surprise! Pensions consultation and ‘targeted support’ rules due mid December

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The finance regulator (the FCA) is due to drop a Christmas surprise and release a widely-anticipated consultation ‘clarifying its expectations on pension transfers and consolidation’ during the week commencing 15th December, Investing Insiders understands.

In the consultation, we’re expecting to see how the regulator intends to deal with pension transfer incentives – where you get a cash bonus for switching pension providers.

We think these are great for engaging people with their pensions, but the FCA has indicated it disagrees, raising concerns that it thinks people aren’t switching for the right reasons.

The consultation is due to drop at the same time as the final rules around ‘targeted support’, a new type of group financial advice that pension and investment providers will be able to offer to customers.

The finance industry and government are hopeful this will enable millions more people to get vital help with their finances, without having to pay for professional advice.

We’ll be keeping an eye on these developments and will update you on what they mean and any changes that will be impact you here, so stay tuned!