The FCA has published a direction on a modification by consent that gives pension providers a framework for the provision of product information in uncrystallised funds pensions lump sum sales, along with a webpage which provides further advice.
The uncrystallised funds pension lump sum (UFPLS) will provide an additional option, for certain members of defined contribution pension schemes who meet the minimum age requirement, for flexible access to their pension funds.
The FCA’s COBS rules will need to be updated to take account of this new facility. To ensure consumer protection and to assist firms to prepare product information relating to UFPLS facilities, the FCA is allowing firms to apply for the modification in advance of consultation.
The modification will be valid from 6 April 2015 until 31 October 2016.
View FCA Direction, 5 February 2015
View Modification by consent of COBS 13 and 14, 5 February 2015