View more on these topics

FSA issues pension loans warning

The Financial Services Authority has warned investors to treat schemes which allow them to unlock 50 per cent of the value of their pension fund before age 55 with “extreme caution”.

The details of the warning note, revealed last week by Money Marketing, focus on the investment risks and loan charges associated with the schemes.

The regulator says the promotional material it has seen “does not state the exact level of fees or charge.” It says there is a “good chance” investors will be left with less than money than they started with.

In May, Money Marketing revealed concerns over pension loan schemes which exploit a loophole in regulations to allow people with a pension pot of £20,000 or more to borrow 50 per cent of that value from a separate occupational scheme.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. I read the above article and empathise completely with what has been stated. I couldn’t agree more that there are a large majority of pension loan providers that do not provide clear and accurate information with regards to their fees and charges. However, it is never good to tarnish everybody with the same brush! Here at http://www.Pensions2Cash.co.uk we strive to introduce clients to providers that give full details of their charging structures.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com