Treasury to cap 'prohibitive' pension exit penalties

FCA to enforce level of cap

Jenna Towler
clock • 3 min read

The Treasury will legislate to cap excessive early exit charges levied on savers using pension freedom, it has confirmed.

The Financial Conduct Authority (FCA) will be tasked with implementing the policy. Speaking in the House of Commons, Chancellor George Osborne said: "The pension freedoms we've introduced have been widely welcomed, but we know that nearly 700,000 people who are eligible face some sort of early exit charge. "The government isn't prepared to stand by and see people either ripped off or blocked from accessing their own money by excessive charges." He added: "We've listened to the concerns and the newspaper campaigns that have been run and today we're announcing that we will change the...

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