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FCA requests provider data after freedoms cash-out blunder

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The FCA has requested extra information from providers on full encashments from new sales during the second quarter of the freedoms.

However, the results will only be updated when Q3 statistics are published later this year.

Earlier today, Money Marketing revealed a figure published by the regulator suggesting 68 per cent of pensions bought in the three months to September were fully cashed out is wrong.

This is because the figure for total encashments during the period (120,969) – which includes both new sales and existing policies – was applied to the number of pensions accessed from new sales only (178,990).

As a result, the percentage quoted was artificially high.

The FCA has now contacted providers asking for information on the number of pensions bought during the period that were fully cashed out.

It has given providers until 29 January to supply the information and won’t produce the accurate figure until the Q3 stats are published.

An FCA spokeswoman could not confirm when the third quarter data will be published.

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