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&#39Pensions Act to stop another Maxwell&#39

Scrapping all pension legislation and replacing it with a single simplified Pensions Act will reduce the chance of the industry being hit by another Maxwell-type scandal, according to Pickering.

Calling for a proportionate regulatory framework, Pickering indicated that he sees today&#39s procedures for regulating pensions as too expensive to adviser, providers and ultimately consumers.

Pickering says he wants a future single Pensions Act based on general principles of reasonableness rather than lengthy detailed prescription of every possible issue the legislator thinks could arise.

His report calls for a regime where professionals back their judgement rather than following detailed codes of practice and guidance notes.

Pickering says: “We are all paying the price of the Maxwell scandal several times over. I want a regulatory system that is far more proportionate. At present, it costs money and gets in the way of consumer protection. If there was another Maxwell around the corner, he would be able to hide under a mountain of red tape.”

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