Plans to introduce additional protection to pension holders ahead of the reforms kicking in in April have been outlined today by the FCA in a letter to chief executives of providers.
The FCA released a statement this afternoon about the regulations, which read: "Under the new additional rules firms will be required to ask consumers about key aspects of the circumstances that relate to the decision they are making about their pension pot.
"These include issues such as health and lifestyle choices or marital status. This will come into force from April.
"Providers will be required to give relevant risk warnings, such as warning of the tax implications of their decisions, in response to answers from consumers. Firms must also further highlight the availability of the Government's new Pension Wise scheme or regulated advice."

{desktop}{/desktop}{mobile}{/mobile}

Christopher Woolard, director of strategy and competition at the FCA, said: "The decisions consumers make about what to do with their pension pot are important and in some instances these choices are irreversible. We want to make sure that people have the help they need to make those choices."
Firms will be required to deliver these messages in "a direct and simple language which will be set out when the new rules are published", officials added.
The rules will be introduced on a temporary basis from 6 April without consultation to provide additional protection for consumers.

Get FREE daily news summaries direct to your inbox. Sign up on the homepage now.

Follow us on Twitter and get frequent news alerts @FPM_online.

Or follow Editor Kevin O'Donnell - @FPM_Kevin or staff writer James Nadal - @FPM_James.

For the latest Sipp, SSAS and retirement news visit our sister news site www.sippsprofessional.co.uk and on Twitter @SippsPro.