ABI outlines pension freedoms plan: ABI has written to the Chancellor of the Exchequer and CEO of FCA setting out its action plan for tackling the implementation challenges with the new pension freedoms. The plan includes:
- a proposal to create a new "customer control" mechanism, replacing the legislative requirement to pay for regulated advice where customers have pension savings that have Guaranteed Annuity Rates and are valued at £30,000 or more and allowing customers to access their pot without having to pay for advice;
- FCA to conduct a broader review of the balance of responsibility between customers and providers in light of pension flexibility;
- FCA to set out clearly those products and circumstances where advice should be taken;
- providers to work with FCA and Department of Work and Pensions to clarify the definition and valuation of safeguarded benefits, by a change in the law;
- ABI and its members to start work on developing standardised language on products and charges to help customers consider their options; and
- ABI and its members to ensure clear, consistent communications to customers on the products and services available.