Bell slams FSA over drawdown statement
AJ Bell has hit out at the FSA for suggesting income drawdown is inappropriate for people with pension pots under £100,000.
In a note outlining the public censure recently handed to Cheshire Life & Pensions, the regulator stated: "It is generally accepted that income drawdown can become increasingly unsuitable if the customer has a pot of less than £100,000."
But AJ Bell marketing director Billy MacKay says: "What the FSA is saying here sounds like a generalisation to me. If a client fully grasps the nature of the risks, why is it deemed unsuitable if they have a fund less than £100,000? It may be they have substantial non-pension assets to rely on alongside their pension fund."
An FSA spokesman says: "Suitable advice on income drawdown plans will depend on individual circumstances but they are usually unsuitable for a consumer where their pension fund is small and they have no other assets or income."