There is already the facility in place for the FCA to cap excessive penalties, but following the recent announcement commentators are suggesting that the rate could be set to zero which is excellent news for ex-pats considering taking advantage of transferring to a QROPS.
Some providers are moving to scrap the fees before the FCA intervenes, preferring a form of self-regulation rather than official intervention. An interesting side effect of this is that, potentially, the net could be widened to halt exit penalties on life insurance and endowment products. Such exit penalties were written into millions of pension and other policies sold in the 70s, 80s and 90s.
Meanwhile, evidence is also mounting that insurers’ record-keeping is so poor that savers’ exit charges will have to be wiped because they cannot be calculated accurately. Experts are now warning pension savers in their 50s and early 60s to check the value of their pensions as widespread erroneous records mean there is a high chance of miscalculation.
If any of the above strikes a note with you, given that you will be relying on your pension for long term provision, you should seek advice from a reputable Independent Financial Adviser before taking any action. An hour’s discussion could significantly alter your future lifestyle for the better. Fill in a contact form to get in touch with Blacktower today.