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ABI response to HMT announcement on excessive early exit charges

The Chancellor has today announced that he will enact legislation to give the FCA the power to cap excessive early exit charges.

Yvonne BraunCommenting on the announcement, Yvonne Braun, ABI Director of Long Term Savings Policy said:

"We note the announcement by the Chancellor today that he plans to introduce a new duty on the FCA to cap exit charges on pensions. As the FCA acknowledge, more than eight out of ten customers do not have to pay early exit charges to access their pensions. Where they do, most fees are below 5% and were put in place decades before the Freedom & Choice reforms were introduced. We will engage closely with the FCA and Treasury on this issue going forward."

Last updated 01/07/2016