29 Sep Report Accuses Pension Regulators of Exploiting Consumers
A recent report has accused pension advisers and providers of exploiting their customers and treating them unfairly. It claims that this system of exploitation needs to stop if it is to fall in line to the changes that will be made to the financial market, however at the moment the FSA is apparently powerless to make any changes.
The watchdog says that customers are being ripped off increasingly by pensions advisers as they look to shore up profits before the implementation of the RDR, when they will be subject to more stringent guidelines and codes of practice. Providers will be banned from taking commission under the new rules, which take affect in January 2013 and will cause many advisers to lose out on some of their profits.
Ros Altmann, director general of Saga, the over-50s organisation said on Citywire "Will the FSA finally act urgently on this
? Its speed of response has been so slow, it is painful to watch. The FSA keeps saying it is looking at the situation – but in the meantime what is happening to these poor investors who are being sold something that may not be suitable. The FSA is failing to protect against damage done by churning and trail commission."