Concern over mis-selling in personal pensions
14/02/2008
The Financial Service Authority is to look into personal pensions amid fears that there may be product mis-selling taking place.
The group has now widened its thematic review of self-invested personal pensions (Sipps) to include personal pensions due to concerns that money is being transferred into them unnecessarily, reports Citywire
This decision has been reached after a substantial surge in personal pensions was detected since A-Day on April 6th, the report continues.
Commenting on the review, Mark Andrews from Manchester-based Redswan said: "Sipps were very much flavour of the month and their growth rate was quite phenomenal. I can’t see how they are now going to look [among] personal pensions generally. Are they saying that people might be better off putting money into Isas rather than pensions?"
People have been given increased flexibility to put money into personal pensions since A-Day which has resulted in thousands of products being transferred into them, according to the report.
The FSA is an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000.
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