FCA finds legacy pension savers receiving poorer value
FCA review found holders of legacy pension products may be receiving poorer value due to complex charges, older product design and weak firm data.
The FCA identified value-for-money weaknesses in closed-book pensions, with data and product design shortcomings preventing firms from demonstrating fair outcomes. Firms are expected to rationalise or simplify legacy funds, aligning with Consumer Duty obligations on price and value.
Direct Consumer Duty implication for pension providers; heightens supervisory focus on legacy book fair value and remediation.
Action Required
Review legacy pension books, data quality and charging structures; document fair value assessments and remediation plans under Consumer Duty.
Signals imminent supervisory action on legacy pension value; sets benchmark for good practice and remediation expectations.
Legacy pension conduct risk elevated. Perform fair value assessment on closed-book products, address data gaps, evaluate fund rationalisation options, and evidence Consumer Duty compliance in RCSA and product governance records.
“The FCA found that people holding legacy pension products, now closed to new savers, could be receiving poorer value. Complex charging structures, older product design and weakness in firms' data mean some pension savers are not getting as much value as they could.”
Published: 2026-07-23