From Money Extra:
City watchdog, the FSA (Financial Services Authority), has publicly censured financial adviser GD Tancred Financial Services Limited (GDT) for not clearly explaining and documenting the risks of income withdrawal to customers with small pension pots (less than £100,000). Income withdrawal allows people to take a tax-free lump sum from their pension pot and receive an income from the rest. This is a high risk business, as people could end up with less income than expected in retirement, the impact of which is greater for those with small pension pots. Hence, income withdrawal is only suitable for a limited number of people. In addition to the censure, GDT has agreed to vary its permission so that any new income withdrawal business must be signed off by a suitably qualified independent person. GDT is also writing to all of its income withdrawal customers to make them aware of the risks of the product and offering them a review of their circumstances. GDT’s failings were discovered…
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