New rules for master trusts
The Pensions Bill made an appearance in the Queen's Speech last week. Natalie Stanton looks at what it might mean for your pension.
Last week, the annual Queen's Speech outlined the laws that the government hopes to get passed by parliament over the coming year. One of the 20 pieces of legislation unveiled was the Pensions Bill, which includes three key measures. Here's a round up of what they might mean for your pension.
Regulating master trusts
Master trusts will face "strict new criteria" before entering the market, including a new capital adequacy requirement. The Pensions Regulator will be handed fresh powers to police the schemes and intervene when necessary to ensure they comply with the rules. These new protections will not just apply to newcomers, they will eventually apply to every master trust on the market.
A cap on early exit fees
The FCA is consulting on where to set the limit, but the move is expected to save some retirees thousands of pounds. The new cap is expected to be implemented before March 2017.