'Anti-consumer and anti-competitive': AJ Bell chief blasts new pension rules
The boss of AJ Bell has launched a broadside against the City watchdog over ‘anti-competitive and anti-consumer’ new rules on pensions.Proposals by the Financial Conduct Authority (FCA) are designed to give savers more information if transferring their pensions from one scheme to another or consolidating several into one.But AJ Bell chief Michael Summersgill said the ‘ill thought-out’ plans would mean a ‘lengthy delay’ in transfers, getting in the way of consumers as they try to put their finances in order.‘These proposals are anti-consumer, anti-competitive and represent the worst kind of regulatory intervention,’ he said.‘Without presenting any clear justification whatsoever, the FCA has set out plans to shut down consumer choice and put barriers in the way of people who do the right thing and engage with their retirement finances.‘This is all the more baffling given the regulator has spent years rightly focused on improving pension transfer times.’ AJ Bell has more than 670,000 customersThe FCA’s proposals, set out in December, are intended to address the risks that non-advised pension savers unknowingly give up valuable benefits such as guaranteed investment returns or protected pension ages if they switch.They might also risk transferring to new schemes that do not meet their needs, for example because they incur higher charges.Under the proposals, consumers seeking a transfer will be asked if they want to see a comparison between their current and new schemes.Their current provider will have ten days to provide the details and the new scheme must then delver the comparison to the saver within three days.But AJ Bell, which has more than 670,000 customers, argues that ‘very few pensions include the benefits and guarantees that the FCA are worried consumers will lose’.Summersgill said: ‘This is a classic case of a solution looking for a problem that simply does not exist.’The firm also noted that workplace pension providers would not be covered by the requirements meaning they could choose to ignore a request for information altogether if a saver into their schemes tried to transfer out to another.‘Ironically, this is where some of the worst offenders when it comes to slow pension transfer times reside,’ said Summersgill.An FCA spokesperson said: ‘We know consumers need clearer and more consistent information when they are making significant decisions about what to do with their pensions.‘The changes we have proposed are a way to achieve this, but we remain open to alternative proposals that will help us deliver our ambition.’AJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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'Anti-consumer and anti-competitive': AJ Bell chief blasts new pension rules
