May 26, 2016 / 6:16 AM / a year ago

UK proposes fee cap on cashing in pension pots

LONDON, May 26 (Reuters) - Charges on Britons cashing in their pension will be capped at 1 percent of the pot’s value, the Financial Conduct Authority proposed on Thursday.

“Firms will not be able to apply any exit charge for personal pension contracts entered into after the proposed new rules come into force,” the FCA said in a statement.

Britain has introduced “pension freedom” reforms in a bid to give people more choice in providing for their retirement.

Reporting by Huw Jones, editing by Susan Fenton

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