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Industry experts urge caution on U K DC consolidation

Industry experts urge caution on U K DC consolidation
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U K proposes putting trustees, DC providers on hook for advice quality

U.K. proposes putting trustees, DC providers on hook for advice quality Getty Images Trustees and providers of defined contribution plans in the U.K. will be on the hook for the quality and acceptance of guidance provided to participants when accessing and transferring savings at retirement, under a government proposal. The U.K. Department for Work and Pensions is seeking views on its proposal, which would require providers of DC arrangements to ensure that plan participants choose to either receive guidance or deliberately opt out of receiving it. As part of the new requirement, the DWP wants trustees and managers to explain to participants the implications of transferring and accessing retirement accounts early, and to help arrange an appointment with a specialist to receive guidance. The DWP is also proposing that participants separately decide to opt out of receiving guidance.

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