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Give non-advised clients a ‘cooling off’ period after freedoms, LEBC says

LEBC public policy director Kay Ingram

Consumers taking their money under the pension freedoms without advice should be given a month ‘cooling off’ period while they take guidance, national advice firm LEBC argues.

The firm has expressed concerns that consumers may not fully recognise the need for sustainable income management and the implications of withdrawal rates as they become aware of the benefits of exercising freedoms.

Responding to the FCA’s work on the pension freedoms, LEBC said it has “called for those who have not taken regulated advice (30 per cent of those exercising pension freedoms) to be given a 30 day cooling off period and referred to a guidance service to give them pause to reflect on their decision before it is too late to reverse it.”

LEBC director of public policy Kay Ingram notes that many advisers will offer initial consultations for these clients without charging a fee.

She says: “Ideally a fixed fee for the second stage of advice should be charged, regardless of the outcome of the advice, that ensures impartiality on the part of the adviser.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. If they took the money out without advice, is a cooling off period going to change anything.

  2. three points

    I would say Is this an opportunity for free publicity for the company.
    point two as advisers have we become so arrogant as financial adviser that we are becoming Nanny knows best so take your medicine
    finally this debate is not new and far back when I established my practice in 1992 I advised clients during their life time pension legislation will change and expected within their lifetime that total flexibility will be available
    my comments were and still are comment backed up by
    a well written article in The Economist which outlined the problems we will face in the future and politicians have only decided to act now
    may be I should send a copy to Frank Field

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