FSA looks to improve pensions advice

Tue, 09 Dec 2008

The Financial Services Authority (FSA) is taking steps to improve the quality of advice given to pension customers.

According to the body, the guidance given to those switching into a personal pension or self-invested personal pension has been found to be of a variable quality.

Dan Waters, the FSA's director of retail policy and conduct risk, explained that although the move can be a good one for many pension holders, it requires good quality advice.

"We are taking targeted action in relation to firms giving pension switching advice to deal with the risk of unsuitable advice on past and future sales," he said.

Some of the failures uncovered by the FSA survey include recommendations which did not match the customer's attitude to risk and loss of benefits from existing pension schemes without good reason.

Last week, a study by Lincoln Financial Group found that 41 per cent of people are doubtful as to whether their pension savings will be enough to match their needs in retirement .
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