FSA look set to issue final warning to pension firms
08 May 2008
Results from a Financial Services Authority (FSA) investigation look set to show that 40% of letters sent by life insurers are below standard and are not informing customers how to find the best pension payouts. Consequently, two-thirds of people nearing retirement are buying a pension from their existing provider, even if it is not the best deal available to them.
It is understood that the FSA is facing increasing pressure from the Financial Services Consumer Panel to fine the companies as well as naming and shaming them.
A spokesman for the Association of British Insurers (ABI) said they were working hard to address the problems. He added: "We accept that standards aren't good enough. But it takes a long time to turn around an oil tanker and we are working with companies to improve their communications."
