UK FCA Tells Pension Firms to Do More for Savers in Older Plans

The UK's Financial Conduct Authority has warned that pension firms must do more to support customers holding older pensions and fund-based savings, following a review of how providers treat these long-standing products. The regulator said some savers in legacy and non-workplace pensions risk poor outcomes, for example through higher charges, outdated investment options or a lack of clear communication that would help them make informed decisions about their retirement money. Under the FCA's Consumer Duty, firms are expected to deliver fair value and good outcomes, and the regulator signalled that older products should not be neglected simply because they are closed to new customers or no longer actively marketed. The FCA urged providers to review these books of business, improve the information they give customers, and ensure charges and investment choices remain appropriate. The move forms part of a wider effort to strengthen consumer protection in retirement saving, an area of growing importance as more people rely on defined-contribution pensions. Firms that fail to act could face further supervisory scrutiny.