Mixed views on pension rule

Tue, 27 Feb 2007

The Financial Services Authority's (FSA) decision to retain the RU64 pensions rule has drawn mixed responses from various industry groups, raising further debate over regulatory issues affecting the UK's pensions market.

The RU64 rule is designed to protect consumers from inappropriate pension sales and mis-selling while placing certain regulatory limits upon the powers of advisors. Consumer group Which? has welcomed the FSA's decision on these grounds.

"It is excellent news for consumers, giving them the confidence they are being given the full picture about which pension product is right for them," said a Which? spokesperson.

Conversely the Association of British Insurers (ABI) argues that the FSA's decision works against the development of a "principles-based regulatory regime", worried that RU64 makes it difficult for financial advisors to advise on pensions issues.

"The ABI will be scrutinising future FSA decisions to test whether they uphold the regulator’s commitment to better regulatory principles, or undermine them," stated an ABI spokesperson.


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