Removing the RU64 rule and introducing a National Pension Savings Scheme (NPSS) type model into the pensions market could lead to "mis-selling on a significant scale" , according to the Financial Services Consumer Panel.
In a letter to the Financial Services Authority (FSA), the 11 members of the panel ask the FSA to consider the impact the NPSS would have and urged it in the “strongest possible terms, not to remove the rule at this stage”. Although the FSA’s consultation on Suitability Standards for Advice on Personal Pensions, closed at the end of October, the letter suggests the FSA is still “considering the responses to the consultation”. Under the proposed consultation, the FSA suggests removing the rule commonly known as RU64, which essentially requires all types of advisers, tied as well as whole...
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