Pensions - Articles - Time running out for urgent reforms to Pension Schemes Bill

 With just 62 days left until the reforms come into force, Government is running out of time to introduce reforms that will protect consumers from detriment

  

 Much greater access to advice is critical for consumers to make informed decisions about pension provision
 As the Pension Schemes Bill enters Report Stage in the House of Lords today, Royal London is calling for urgent reform to the financial advice market before the legislation comes into force in April 2015. With just 62 days remaining, the Government’s reforms risk massive consumer detriment unless steps are taken to secure much greater access to financial advice.

  

 Phil Loney, CEO of Royal London, said:

 ‘As the Pension Schemes Bill nears the end of its Parliamentary process, the Government is running out of time to implement critical reforms to strengthen its proposals. Pensions Minister Steve Webb and the Financial Conduct Authority have previously indicated their support for introducing a more affordable advice model, but as the clock ticks down toward implementation, we have yet to see any real action. Yesterday’s announcement by FCA that they will give customers “Additional Protection” by requiring pension providers to give some clear and direct warnings about the consequences of their actions is welcome but it doesn’t do anything to increase the supply of affordable advice.

  

 “We are calling on Peers to take steps to strengthen the Bill and clearly point out the importance of impartial advice. Otherwise significant numbers of consumers will end up making complex decisions without access to the financial advice they need to make the right choices with their pensions. The risk of consumer detriment is huge. The Government has just 62 days left. We urge them to act now, make these critical changes and protect consumers.”