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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

early exit charge

    117has the meaning given in section 137FBB(6) of the Act, which is, in summary:

      1. (a) a charge imposed on a member of a personal pension scheme or stakeholder pension scheme:
        1. (i) when that member, having reached normal minimum pension age, takes the action set out in (b); but
        1. (ii) which is only imposed, or only imposed to that extent, if the member takes that action before the member’s expected retirement date; and
      1. (b) the action is the member taking benefits, converting benefits into different benefits or transferring benefits to another pension scheme; and
      1. (c) in this definition:
        1. (i) a reference to “benefits” includes all or any part of the member’s benefits under the scheme;
        1. (ii) “charge” includes a reduction in the value of the member’s benefits under the scheme;
        1. (iii) “expected retirement date” means the date determined by or in accordance with the scheme as the date on which the member’s benefits under the scheme are expected to be taken; and
        1. (iv) “normal minimum pension age” has the meaning given in section 279(1) of the Finance Act 2004.
        [Note: the meaning of “normal minimum pension age” referred to in (c)(iv) above, is, in summary, in relation to dates on and after 6 April 2010, 55 and, in relation to dates before 6 April 2010, 50].