'Second line of defence' exemption for £10k pension pots

Providers were told to question customers looking to cash in their pension pots after freedom and choice was introduced to prevent people making bad decisions with their retirement funds. The FCA's latest consolation, Pension reforms - proposed changes to our rules and guidance, plans to relax the rules on risk warnings when savers with small pots want to encash their pensions. The consultation proposes the ‘second line of defence' should only apply to pots above £10,000 or if people have accrued safeguarded benefits. Providers would still have to give people appropriate risk-warnin...