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Bee says Turner’s scheme fails FSA’s suitability test

Adair Turner’s National Pension Saving Scheme goes against the FSA’s suitability requirements, says Scottish Life head of pension strategy Steve Bee.

He says the scheme presumes the pension is a suitable investment without allowing for advice to be given and leaves uncertainty over where liability lies.

He says the FSA told the Treasury select committee last month that advisers had to be careful giving advice to lower earners around issues such as pension credit and that the NPSS flies in the face of this.

The view is echoed by ABI director of life and pensions Chris Kenny, who says there is the potential for a regulatory playing field that is not level and suggests the FSA may have to bring in a lower level of regulation for certain products.

Bee says: “The FSA stressed the importance of advice to those on lower income and the proposals seem to go against the regulator’s guidelines.”

The FSA says it will not give a timescale for any response to the report.

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