Exit penalties for savers wishing to exercise pension freedoms should be capped at 1% of the value of their fund says the Financial Conduct Authority (FCA) in a consultation document. The cap would apply to personal, stakeholder and self-invested personal pensions. It would apply to existing contracts if an exit penalty is applied, but only to people aged 55 and over. New contracts will have a zero cap.
The consultation period ended on 16th August 2016.