The UK's Financial Conduct Authority has unveiled rules that place an upper limit on early exit charges for consumers eligible to access HM Government’s pension reforms after the age of 55. They will take effect on 31 March 2017.

From that date on, early exit charges will be capped at 1% of the value of existing contract-based personal pensions. Early exit charges that are currently set at less than 1% may not be increased. Firms will not be able to apply an early exit charge to personal pension contracts signed after the rules take effect.